Friday pre-market 12-16-2011
Dr. John L. Faessel
ON THE MARKET
Commentary and Insights
Quote of the day
“Broke nations are being bailed out by a broke transnational organization [IMF] bankrolled by a broke superpower in order to save a broke currency.”
~ MARK STEYN ~
The Markets Drivers > EuroLand Bond Yields
Italy 10-year (gross) bond yield – 6.43% off from 7.26% on 11-24
Spanish 10-year (generic) bond yield – 5.11% - off from 6.7% on 11/24
Bullish Patterns “still” intact - but good grief!
Danger lurks. Put /call volume ratios jump. Key metrics are caving. Gold, copper and crude oil tumble but the Euro holds. Our stock market puts in an inside day on below average and lower volume.
The fact that the key metrics have come loose from their patterns suggests that major players are more worried about the European mess. Cash is being raised. Big picture domestic sentiment is terrible and it's worse in Europe. Is there any hope from those Brussels bozos? And our administration refuses to harvest our immense natural resources. The hang-up re the pipeline from Canada to the USA says it all. Lunatics control to show.
The Federal Reserve reports foreign banks tapped the dollar swap facility for $52.4billion of loans in the week ended December 14, substantially more than the $2.3billion borrowed the previous week.
Ruling the MARKET - Again: “From a technical perspective the key declining Tops line resistance at (SPX) 1317ish that comes off last July's top tick will be the overriding wall of resistance.”
Correspondingly the lower trend line off “the” lows of 10/4 and 11/28 is at (SPX) 1183.
The (SPX) closed yesterday at 1215
Short term price support in the S&P 500 (SPX) is at 1214
Channel support is at 1219
Key (3-day) price support is at 1209
Price support at 11/28 lows is 1158
Price support at the August 8th lows is at 1101.
Support at the October 4th lows is at 1074.
50-day moving average resistance is at 1227
Short term price resistance is at S&P 500 (SPX) 1225 then at 1245
Channel resistance is at 1226
The 200-day moving average resistance is at 1261.
Thursday’s key indicators and metrics:
· McClellan Oscillator is Neutral @ minus 101
· McClellan was OVERSOLD @ minus 162 yesterday
· VIX – 25.11
· CBOE Put / Call Volume Ratio – 1.26
· Euro – 1.3012
· US Dollar Index – 80.34
· 3-month $ LIBOR at 0.555
· Silver (COMEX) 29.274
· Gold (COMEX) $1577.2
· Swiss Franc – 1.0633
· Japanese Yen 12837
· The Treasury 10-year yield 1.91%
· Crude oil (NYMEX) $93.87
· Aussie Dollar – 0.9914
· Copper – 3.2670
· Brent Crude $104.36
· Canadian Dollar – 0.9653
For Football Fans...to Blow Your Mind...
Yes, Robert Griffin won the Heisman, but ck out this 19 year old sophomore:
You tube of Ronnie Hillman “The Second Coming” (of Marshal Faulk) came in 3rd in the nation in rushing (was hurt (ankle) for 2 games too and carried just a few times)
To see my comments on Star Scientifics’ patent application; CIGX - Science, Law and Credentials and Unfathomable Market Potential: seekingalpha.com/instablog/576542...
For my Best Ideas for 2012 please send an e-mail request to: Dr.Faessel@onthemar.com