Morning Commentary for Thursday Jul 8, 2010 – Market Reversing??

by Tom Nunamaker on July 8, 2010

E-mini S&P 500 1055.75 -3.50
EUR/USD 1.2669 +0.0015
30-Day Fed Funds 99.8175 +0.0025
Gold 1195.0 -3.9

US Equities started out higher but have drifted lower.  The US Dollar has been slipping against other currencies and is forecast to lose more ground  (see

The markets still seem pretty volatile to me.  RUT intraday range has been crazy in the last few trading days.  Good for gamma scalpers.. bad for income traders.  You really need to keep a flat T+0 curve to weather these stormy markets.

The daily chart of SPX looks like a 2B reversal pattern to me.  The overall trend is still down but there’s a potential to rally from here.  This means it’s unclear which way to play it.. except CAUTIOUSLY.. with extra long calls and puts!

2B Reversal - LONG

2B Reversal - LONG

SPX Daily - 2B reversal triggered

SPX Daily - 2B reversal triggered


{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: