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July 6, 2009

Monday Sleeper

Short wrap tonight since the market pretty much followed the script. Ergo, there is nothing new to add to the literature. I know a lot of people are going to be looking at the apparent hammer reversal on the S&P 500 chart and claim a low for the move has been printed.

s&p 500 daily chart

However, these traders will be disappointed. The market gods were doing nothing more than defending the 65DMA, and we may be setting up for the 2-day crawl I was hoping for. Besides, volume was not substantial enough to qualify the reversal as a hammer, nor was the reversal even strong enough. Generally, a greater penetration of the previous down day is desired.

Oil and natural gas continue to get clobbered while precious metals had a mildly negative session after being down more strongly in the early going. I am still holding my breath for a panic sell day in silver.

My posts are going to become a bit irregular through July since I will be on the road again, but I will be around as much as possible.


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