Morning Call [8:00am ET] A sharp -1.0% sell-off in the US Dollar this morning, has the prices of most equities and commodities flying. Here we go again.
Word of the day: Bear Trap. Answers.com says it is “a false signal that the rising trend of a stock or index has reversed when it has not". Investopedia says “This can occur during a bear market reversal when short sellers believe the markets will sink back to its declining ways. If the market continues to rise, the short sellers get trapped and are forced to cover their positions at higher prices.”
I suppose this particular rally will collapse when financial industry lobbyists don’t get their every “i” dotted and “t” crossed as the lawmakers in Washington attempt to merge House and Senate bills into a single piece of banking reform legislation.
Say it isn’t so, but, according to AP this morning, the facts are that “at least 56 industry lobbyists have served on the personal staffs of the 43 Senate and House members who will shape the legislation over the next two weeks”. Will the public really get what is needed?
In any case, the Nikkei 225 closed up +1.80% today and the European exchanges are about +1.0% higher at this point. The Euro future is up +1.02% to 1.2253. Market technicians are looking to the S&P at 1100 and DJIA at 10300, from the futures at 1093.5 and 10207 at present, as being the next line in the sand. After that, they are pointing us south.
Blog_Jun_14.1.GIF
Have a great day.
CTA Trading Desk Post-Close Report
This report will be published after the US market close. Attachment Size Attachment Size Blog_Jun_14.1.GIF 30.87 KB
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