Monday, July 13, 2009

Evening Briefing for July 13th

* MARKET THEMES FOR MONDAY: Market shrugs off weakness in Asia to open firm, then holds above overnight low on selloff before taking off to the upside. We broke out of a multi-day range to the upside and returned to the May/June trading range, increasing the odds that we've put in an important low. Oil continues to show relative weakness; financial stocks were strong. The dollar remains in a relatively tight multi-week range; we saw a bounce in 10-year Treasury rates. Here is a wrap of the market day.

* OVERSEAS/OVERNIGHT NUMBERS: 11:30 PM CT - Japan, retail sales; 3:30 AM CT - UK, retail sales, housing prices, CPI; 4:00 AM CT - Germany, ZEW economic conditions/expectations; 4:00 AM CT - EU, industrial production. Scheduled earnings releases for 7/14 include GS, INTC, JNJ.

* WORTH READING:

-- Will we see greater interest in nuclear power?

-- Worthwhile thoughts on writing a successful blog;

-- A review of the major indexes; where we stand after today's bounce;

-- Good review of ETF strength and weakness;

-- Comprehensive review of the market week through ETFs and statistics;

-- Interesting views on volatility;

-- Excellent overview of the economy.
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3 comments:

rightcross said...

Brett,

Just wanted to say thanks for all you provide to the trading community, most of it free of charge. You're one of the good guys and it's much appreciated.

Best,
Matt

John said...

I caution against calling 865 a significant low. It was a natural place to bounce from and the divergence of internals to the subsequent tests of this low pointed to a bounce. Markets continuously test and re-test price points and I believe we will be back very soon re-testing this most recent low.
To call it significant might be construed as a low not to be re-tested in the next month and I do not believe that will be the case.

Anthony said...

Brett, did you see any signs that the mkt would trend higher without any intraday corrections? i attempted several shorts that never broke down. Gravestone dojis are usually pretty reliable indicators, but we charged higher every time. i suppose the TICK never really broke down, but it seems that XLF had the mkt by its balls all day. So i'm just wondering if you saw any signals there wouldnt be an intraday correction b/c these days usually result in a pullback to at least the vwap before the ultimate move higher.