Thursday, July 08, 2010

July 8, 2010 You keep me hangin' on


July 8, 2010 You keep me hangin' on

The Supremes could not have said it better.  The market was hanging on to a nice 3 day rally, the first since about April if my charts are right.  There was again no blowout news to expalin the gains.  Perhaps fund managers and average day trading casino monkeys like me new the market was a bit over sold.  The Ten Year Treasury eased its way over 3% to today indicating that the Feds had to pay a tad more interest to get buyers, which in turns mean investors were probably putting their money to work elswhere including the market. 

The IMF didn't hurt future prospects when they uped the world GDP number from 4.2% to 4.6% for 2010.  That does not sound like much, but .4 % of the global economy is a lot of dough.  Let me put it in terms even I can understand.  That .4% could buy 3,672,000,000,000,000 Oreo cookies.  That would be three quadrillion, 672 trillion cookies.  Have to order more milk.

Anyhow it was a travel day today so I am cutting this short.  We stopped out of UNG today as large supplies of nat gas has dropped the commodity to a low that triggered my stops.

Here is my guess for tommorow.  Fund managers are out partying right now becaus of the great week.  They will be hung over tommorow and looking for any reason to take a profit.  Look for at least a point to the down side giving us a 3 % gain for the week.  Sound familiar?  Go back to Sunday night post.  We guessed 2-3 % for the week.

Have a great weekend.

Salve Lucrum


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