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Our first feature of the day was Phil's Morning Alert to members:
Phil - June 2nd, 2010 at 9:42 am
Europe is down about a point so bad over there but we still seem bouncy so we’ll go with the flow while we can. We are looking for the bottoms of our ranges to be the tops we need to test:
- Dow 10,200 to 10,650
- S&P 1,100 to 1,155
- Nasdaq 2,225 to 2,350
- NYSE 7,000 to 7,250
- Russell 620 to 660
These are the same two greens we had on Friday and I know it’s hard because we get so caught up in the daily moves but IT’S JUST NOISE in the big picuture. RUT hit a top at 666 so we’ll be watching that for a leadership breakout and we’ll be watching 6,500 as the line of DOOM on the NYSE and you’d damn well better be bearish if that breaks!
Woo-hoo on oil futures, now up to $72.75 so that’s a .25 trailing stop of our entry, which should perk up the XLE, if not the OIH and that should give us a good day if they can break $73 and hold it, regardless of Europe’s wimpy markets today.
The key will be - do we get more than a 1% bounce off our 5% line (the 1% line on the chart this morning) or is this just a weak bounce that will prove we’re in a serious downtrend? Let’s watch copper (under $3 is bad), oil (under $72.50 is bad), SOX (350 is our good/bad line) and, of course, that NYSE, which is currently like an anchor around the necks of the other indexes. We’re not going to get a real turn up until the NYSE LEADS us to the upside.
It’s a tricky trading day because the range we are happy with is -1% from the open to up 1% from the open and whichever way we break from there is going to be critical
Disclosure: Positions as indicated but subject to change