First off i would like to revisit a phrase i have used many times “The biggest moves happen when you least expect them.” ….Tonight the selling over powered the ever present ramping…. im not gonna get my boxers up in a bunch (though cotton futures are limit down) until we lay out 1200.
Tonight we saw continued dollar strength with gold futures taking a dive to the 1387 area. Clearly the trade tonight was commodities, followed by the EURO. Us dollar futures could pop a bit over the 78.60 level, only if the highly correlated gold contract pulls into 1386. If the euro drops below 1.36 im sure correlation desks are going to press the gas.
Tonight the downside level of violent buying/selling was 1200.50, the spillage started up at 1211.50ish as NYC closed.
From that point, obviously following the Disney debacle the futures were offered all the down to 1200.50 where some buying came in. Look for a break of this level to be followed by a break of 1200 on substantial volume.
ON the upside look for 1207 and 121 to be lines in the sand. If we go through 1200 we will surely hit 1195 maybe 666.
GO get em. QE2 baby!
|Nov 12||09:55||Mich Sentiment||Nov||68.5||69.0||67.7|