Well, yesterday’s trading action or inaction, went pretty much as expected, with a rally in the Tech’s, specifically the FANG GANG, while the other Indexes mucked about in narrow ranges on light volume. The averages all remain within shouting distance of their record highs, but at this moment in time, there seems to be very little Investor interest in chasing prices higher, especially with the Fed’s Queen Bee, Janet Yellen, going up to chat with the Financial Committee’s of the House and Senate, on Wednesday and Thursday at 10:00am. I’m pretty sure the Fed Chair won’t say anything crazy, but there’s the chance that one of our elected idiots, will ask her why the Fed wants to raise rates and she will tell him/her why and that might cause problems for stocks. Another reason for Investors to be a bit reluctant, to buy this week, is that the Banks start reporting 2nd Qtr Earnings on Friday and with the Banks recent run-up, those numbers better be damn good, or there will be trouble. Overall, the markets are in good shape, especially with the NASDAQ settling down after a rough few weeks and as long as earnings and outlooks remain positive, Investors can look forward to a quiet, but profitable summer.
Technically, the NASDAQ has more room to rally, the DOW and S&P are stuck in no man’s land and the
Russell 2000 and Transports are extended and look like they might pull back for a bit. So, if your looking
to trade, stay with the Tech’s, where you will get the most bang for your buck, but remember to always
use STOPS, to prevent any disasters.
Overnight, Asia traded higher, Europe is mixed and in early trading our markets are slightly lower. The Yield on the 10 Yr Treasury is up a few ticks to 2.39% and remember that a break through Resistance at 2.41%, rates could spike back up to highs at 2.60%. The U.S. Dollar is higher and that has Commodities lower, with Oil at $44 and Gold trading at $1210.
We have no data of interest today, but we do have some Fed Speakers at 12:00 (Brainard) and at
1:00 (Kashkari) so that’s something and after the bell, we have the API Oil Inventory report. Overall, expect
another slow, low volume, summer day and wait for Janet Yellen tomorrow.
Today’s Early Markets
DOW Futures— down 10.00 London – down 45.58
S&P – down 100 DAX – up 24.56
GOLD—$1210 August Nikkei — up 114.84
OIL— $44.00 August HangSeng — up 377.78
DOW RESISTANCE 21,520 S&P RESISTANCE 2432
DOW SUPPORT: 21,320 S&P SUPPORT: 2420
$NASDAQ RESISTANCE 6200
$NASDAQ SUPPORT 6160