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Daily Market Report:June 17th, 2010
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Whipsaw Thursday
It is rather ironic that yesterday we talked about the games that the institutional traders will play during the week of options expiration and today that was so evident. The market was really all over the map. d Around 2:00 pm EST the market sold off sharply only to recovered from a 50 point decline at 3:30 pm EST to close positive by 24.71 on the Dow Jones Industrial Average in the final 20 minutes of the trading session. All day long in the chat room today we warned that it is prudent to expect the unexpected as the market is lacking conviction and the quadruple options expiration usually leads to unnatural and unexpected moves. This market has now rallied sharply since the June 8th pivot low, however, much of this move is due to options expiration. While we are getting closer to a level where a short on the indexes would be in order we are not there just yet. It is always important when trading to use the old saying from the 'Battle of Bunker Hill' that states, “don't shoot until you see the whites in their eyes”, by William Prescott. That is exactly what we must do as a trader when the markets are lacking conviction. This is a time to be patient. Once options expiration is over we shall have many more setups. At this time continue to remain a short term trader. The master resistance levels for the S&P 500 Index are 1118, 1137, 1153, 1171, 1186, 1205, and 1220. The master support levels for the S&P 500 Index are 1103, 1084, 1070, 1052, 1038, 1020, 1006, 989, 974, and 957.
August crude finished the session lower by 0.88 to closed at $77.79 a barrel. The master support levels for oil are 74.00, 71.00, 67.00, 63.00, 59.00, 54.00, and 51.00. The master resistance levels for crude are 79.00, 84.00, 89.00, 95.00, and 100.00. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar.
August gold finished the session higher by 18.20 to close at $1248.70 an ounce. The master resistance levels for gold are 1251, 1272, 1287, and 1308.The master support levels for gold are 1236, 1218, 1202, 1182, 1167, 1148, 1134, 1114, 1100, 1087, 1067, 1035, 1016, 1003, 984, and 971.
The 10 year bond yield finished the session lower by 0.092 to close at 3.19%. The support levels for the yield are 3.13%, 3.03%, 2.95%, 2.85%, 2.78%, and 2.69%. The resistance levels for the yield are 3.21%, 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, this was another volatile and choppy trading session during a quadruple witching options expiration week. As we all know by now a lot of games will get played by the large institutions during this time. Once expiration is over we can go back and find some better strategies and chart setups. Until then remain a short term trader.
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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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1,908 |
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1,312 |
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| Declining Issues |
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1,886 |
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1,297 |
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| Unchanged Issues |
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124 |
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137 |
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| Total Issues |
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3,918 |
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2,746 |
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| New Highs |
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102 |
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39 |
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| New Lows |
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30 |
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30 |
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| Up Volume |
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1,853,298,417 |
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901,350,528 |
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| Down Volume |
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3,318,700,589 |
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735,461,801 |
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| Unchanged Volume |
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37,035,323 |
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44,990,210 |
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| Total Volume |
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5,208,872,390 |
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1,681,802,539 |
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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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3.96 |
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-0.03 |
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584,897,223 |
| SPY |
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112.14 |
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+0.18 |
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248,809,571 |
| BAC |
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15.82 |
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-0.05 |
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126,879,007 |
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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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3.96 |
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-0.03 |
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584,897,223 |
| SPY |
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112.14 |
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+0.18 |
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248,809,571 |
| BAC |
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15.82 |
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-0.05 |
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126,879,007 |
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Biggest Losers
| Symbol |
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Closing Price |
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Change |
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Volume |
| NMTI |
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0.56 |
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-2.02 (78.29%) |
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3,389,184 |
| GRS |
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6.78 |
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-0.74 (10.00%) |
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8,679,650 |
| ARWR |
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1.23 |
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-0.41 (25.00%) |
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4,132,761 |
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