News and Charts for Monday
Futures are pointing lower this morning, but they were pointing lower on Friday, too, and look what happened. Anyway, here are some charts ...
The SPY tracks the S&P 500. You can see its V-shaped rebound is coming on falling volume. Some will argue that the low volume is due to summer and traders taking time off. Maybe so, but there was plenty of volume available the previous week when the market was sell-sell-sell!
In short, this is a classic set-up for a revisit of the lows or at least close to the lows. Does the market have anything going for it? Sure! On CNBC, they have one guest after another that is bearish, bearish, bearish. This bearish sentiment is actually a bullish indicator.
The upshot is we may see some churning without any real direction.
Now, let's look at the US dollar ...
Man, that doesn't look good. How about Treasuries?
Again with the mixed signals! Really, the charts are a muddle. I'd look for more direction once the Existing home sales come out at 10 am today. On Tuesday, we see the consumer confidence numbers and the FOMC minutes. These could all drive the market.
Here is some news you might find useful today ...
Fed May Kill Rally in Long Bond as Focus on Inflation Fades in Debt Crisis The rally in 30-year Treasury bonds, the most profitable U.S. government securities the past 15 months, may become a casualty of the Federal Reserve's efforts to ease a widening credit crunch.
Insiders' Buying at Banks, Insurers Rises to 12-Year High as Shares Fall Not since 1995 have so many chief executive officers of so many financial firms and their insiders bought so many shares in their companies as in August, when the market swooned.
Kazakhstan Orders Eni to Halt Work on Oil Project, Seeks Greater Control Kazakhstan ordered Eni SpA to halt work at the world's biggest oil discovery in 30 years as the Central Asian country follows Russia's lead in seeking greater control over its natural resources. [XXKazakhstan is also a huge supplier of uranium -- keep your eye on this one]
Also, be sure to visit my friend Kevin Kerr's blog for updates and insights into the commodity markets. He has a story there (with an eye-popping photo) about the floods in farm country.
The SPY tracks the S&P 500. You can see its V-shaped rebound is coming on falling volume. Some will argue that the low volume is due to summer and traders taking time off. Maybe so, but there was plenty of volume available the previous week when the market was sell-sell-sell!In short, this is a classic set-up for a revisit of the lows or at least close to the lows. Does the market have anything going for it? Sure! On CNBC, they have one guest after another that is bearish, bearish, bearish. This bearish sentiment is actually a bullish indicator.
The upshot is we may see some churning without any real direction.
Now, let's look at the US dollar ...
Man, that doesn't look good. How about Treasuries?
Again with the mixed signals! Really, the charts are a muddle. I'd look for more direction once the Existing home sales come out at 10 am today. On Tuesday, we see the consumer confidence numbers and the FOMC minutes. These could all drive the market.Here is some news you might find useful today ...
Fed May Kill Rally in Long Bond as Focus on Inflation Fades in Debt Crisis The rally in 30-year Treasury bonds, the most profitable U.S. government securities the past 15 months, may become a casualty of the Federal Reserve's efforts to ease a widening credit crunch.
Insiders' Buying at Banks, Insurers Rises to 12-Year High as Shares Fall Not since 1995 have so many chief executive officers of so many financial firms and their insiders bought so many shares in their companies as in August, when the market swooned.
Kazakhstan Orders Eni to Halt Work on Oil Project, Seeks Greater Control Kazakhstan ordered Eni SpA to halt work at the world's biggest oil discovery in 30 years as the Central Asian country follows Russia's lead in seeking greater control over its natural resources. [XXKazakhstan is also a huge supplier of uranium -- keep your eye on this one]
Also, be sure to visit my friend Kevin Kerr's blog for updates and insights into the commodity markets. He has a story there (with an eye-popping photo) about the floods in farm country.
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 6:58 AM
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