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Daily Market Report:June 16th, 2010
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Typical Whipsaw Wednesday
Today's action in the market was sloppy and choppy the way most Wednesday's are before options expiration. Many amateur traders and investors think that options expiration is only on the Friday at the close of the week. Contrary to what these traders believe the institutional money uses the entire week to shake traders out of their positions. It is important to realize that just a small number of contracts ever get exercised and are usually closed before the actual expiration date. This week is also quadruple witching which means it will be expiration for stock index futures, stock index options, stock options and single stock futures. Therefore, there is a lot going on during this week and a lot of games will be played by the institutional money. Remember it is the big institutions that move the markets and they certainly have enough capital on hand to do what they see fit for the week of expiration. This short term rally is not very impressive as the volume is somewhat light lacking the mustard on the sandwich. Once we have a pattern or reach a certain level it will be time to sell short the indexes again. Right now the dollar has pulled back from a very good resistance level and that is the driving force behind every market move. Simply put as the dollar falls the stock indexes rally or inflate. Remain short term for now and that will keep everyone safe. The master resistance levels for the SPX are 1118, 1137, 1153, 1171, 1186, 1205, and 1220. The master support levels for the SPX are 1103, 1084, 1070, 1052, 1038, 1020, 1006, 989, 974, and 957. Please note the high on the SPX today was 1118.00 and this is why we call them masters.
August crude finished the session higher by 0.81 to closed at $78.72 a barrel. The master resistance levels for crude are 79.00, 84.00, 89.00, 95.00, and 100.00. The master support levels for oil are 74.00, 71.00, 67.00, 63.00, 59.00, 54.00, and 51.00. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar.
August gold finished the session lower by 3.90 to close at $1230.50 an ounce. The master support levels for gold are 1218, 1202, 1182, 1167, 1148, 1134, 1114, 1100, 1087, 1067, 1035, 1016, 1003, 984, and 971. The master resistance levels for gold are 1236, 1251, 1272, 1287, and 1308.
The 10 year bond yield finished the session lower by 0.028 to close at 3.282%. The support levels for the yield are 3.21%, 3.13%, 3.03%, 2.95%, 2.85%, 2.78%, and 2.69%. The resistance levels for the yield are 3.31%, 3.39%, 3.49%, 3.57%, 3.68%, 3.77%, 3.88%, 3.96%, 4.08%, 4.16%, 4.28%, and 4.36%.
In summary, the stock indexes traded all over the place today before basically finishing the session flat on the day. This rally looks to be mostly institutional propping into options expiration. It is possible that it could last into the end of the week, however, a pullback here cannot be ruled out as the daily chart pattern looks poised for a pullback. At this time remain a short term trader and nothing more. Once we reach certain levels or have certain patterns in place we shall sell short the indexes once again.
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Market Breadth
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NYSE |
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NASDAQ |
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| Advancing Issues |
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1,643 |
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1,080 |
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| Declining Issues |
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2,181 |
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1,574 |
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| Unchanged Issues |
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130 |
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132 |
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| Total Issues |
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3,954 |
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2,786 |
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| New Highs |
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98 |
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55 |
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| New Lows |
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42 |
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30 |
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| Up Volume |
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1,928,064,428 |
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856,173,101 |
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| Down Volume |
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3,226,893,033 |
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928,157,313 |
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| Unchanged Volume |
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469,385,482 |
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37,330,139 |
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| Total Volume |
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5,623,904,581 |
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1,821,660,553 |
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Most Actives
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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3.99 |
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0.00 |
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404,443,952 |
| BP |
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31.85 |
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+0.45 |
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234,432,063 |
| FRE |
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0.75 |
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-0.47 |
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213,962,141 |
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Biggest Gainers
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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3.99 |
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0.00 |
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404,443,952 |
| BP |
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31.85 |
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+0.45 |
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234,432,063 |
| FRE |
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0.75 |
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-0.47 |
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213,962,141 |
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Biggest Losers
| Symbol |
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Closing Price |
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Change |
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Volume |
| FNA |
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0.86 |
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-0.56 (39.43%) |
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647,742 |
| CRIS |
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1.69 |
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-1.57 (48.16%) |
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7,859,851 |
| FRE |
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0.75 |
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-0.47 (38.28%) |
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213,962,141 |
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