Market Notes: Egypt Coup Boosts Etf -- July 2

Jul. 02, 2013 4:19 PM ETEGPT, UUP, FXA

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The past couple of weeks has been a struggle between the bulls and the bears. Yesterday, the bulls strength began to tire mid-day as the bears stepped in and today;s action was a repeat of yesterday's. The VIX briefly dipped its toe under the 16 level yet again before charging right back up. Trading during this holiday shortened week is light which intensifies any pressure on either side--something that is probably making day traders happy. The market closes early tomorrow (1pm ET) and on these holiday shortened days it typically closes in the green. Gamblers may wish to take advantage of this situation using futures or options. (Buy calls/futures early and sell at the close.) Friday, though, could be a different story as the bears might finally take charge although trading will be very light. We probably won't get a clear picture of what's happening until next Monday.

Today's notable market action was dominated again by the regional banks where 48 new highs were made. Two other newsworthy events: 1. The dollar (UUP) gained against foreign currencies most notably the Aussie buck (FXA) now at a multi-year low; 2. The military coup in Egypt must have been good news because it sent the Egypt etf (EGPT) soaring, up 6% on heavy volume. This etf has been decimated and could rally again depending on the outcome of the new ruling regime but that's a very risky bet at the moment.

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