Jul 222010

The European markets are up while the Asian markets are mixed. Corporate earnings continue to come in better than expectations, fueling much of the overnight up move. The Euro and the Yen are both up against the dollar reflecting the uncertainty in the US economy. The carry trade itself is up strong overnight but has been trending down most of this week. The big market mover yesterday and the wild card for this morning is Bernanke. His opinions about US economic outlook is “unusually uncertain” triggered the down move yesterday afternoon. However he also said the Federal Reserve may have to consider more stimulus measures to sustain US economic recovery. The big question is; will he start offering solutions today fueling market volatility? The jobless claims came in below expectations which caused the ES to initially react negatively however it’s since recovered. The bias this morning is definitely up. We have several strong resistance areas above which should offer good shorting opportunities. The long opportunities below are not as well defined. The 70 / 73 area has been passed through 3 times since Monday without much volume activity. Thus that is an area primed for a few market rotations. It would be wise to be out of the market around 10am EST this morning. With 2 reports, if one should miss expectations; market volatility will result.

 Posted by at 9:15 am

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