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Friday, July 8, 2011

|Includes:DIA, GLD, QQQ, SLV, SPDR S&P 500 Trust ETF (SPY), TIP, TLT, USO, UUP, ZAGG

Stocks had somewhat of a comeback and avoided a disaster after the jobs report disappointed...The Nasdaq Composite finished nears its highs for the day and the S&P 500 finished near the middle of its intra-day trading range...Even so based on the stock market direction we are are lowering the support/resistance levels on the S&P 500 (NYSEARCA:SPY) (1,343/1,345) and Nasdaq Composite (NASDAQ:QQQ) (2,835/2,873)...The support/resistance levels are the same on the DJIA (NYSEARCA:DIA) (12,605/12,760)...From the focus list Zagg Inc. (NASDAQ:ZAGG) was the only stock that traded on material volume-ZAGG finished down 0.9% but closed closer to its highs for the trading session and higher than its opening price...All nine sectors declined BUT all of them finished at or near their session highs-market had a nice price rally in the last hour of trading-no sector moved on any kind of material volume...Bond related securities were the only ETFs that we follow that rose today on above average volume...Bonds (TLT) rose 1.4% on moderately higher volume and regained its 50 day moving average but created a gap up between $94.50 and $94.83...Inflation Protected Securities (TIP) increased close to 0.5% on heavy volume and made a new high-it also created a gap between $110.55 and $110.78...Very often when gaps are created securities come back down (on gap ups) or up (on gap downs) in the near term...The US Dollar (NYSEARCA:UUP) was up a small 0.2% on very low volume and held its 21 and 50 day moving averages for the third straight session...Silver (NYSEARCA:SLV) up 0.7% today and continuous to trade on very low volume as it continous to be in a basing pattern since late May after a violent selloff-SLV closed right below its 50 day moving average...Gold (GLD) gained 0.7% on volume moderately above average and closed the gap down it had in June trading up as high as $150.50 in today's session-GLD remains above all its moving averages (21, 50, and 200)...Oil (NYSEARCA:USO) declined 2.1% on very low volume but stayed above its 21 day moving average...Scanning the stocks/ETFs/sectors we like to follow only TIP is trading on heavy volume and at a new high...Volume is drying up as the day has whore from already low levels...After closing its gap up from yesterday at 2,839 the Nasdaq Composite has fallen as low as 2,831 intra-day today and has rallied from there now to around 2,851 down 0.7%-not bad considering the bad jobs report announced this morning for June...As we mentioned a few days ago Gold (symbol: GLD) had a gap down in its chart that it yet to close-today GLD has closed the gap down level trading as high as $150.55...Treasury Inflation Protection Securities (symbol: TIP) is making a new high on heavy volume today...Bonds (symbol: TLT) are up so far are trending higher on heavier volume by 1.2% and is trying to reclaim its 50 day moving average...As we mentioned in yesterday's post the opening the Nasdaq Composite had yesterday created a gap up between 2,839 and 2,854...As of right now the Nasdaq has closed the gap and is trading right at 2,839...Let's see where things go from here.


No positions in securities mentioned.