Morning Corner 6.7.11

FTSE (weekly info)
-no change (below mid)
direction=up (2 bars)
high= 6069.90
rev= 5718.13; mid= 5894.02

The UK market is breaking down. For the last five weeks it had been testing its weekly 3LB mid. It closed below it last week. It's still above all SMA's but its MACD(9,15,7) is below zero and falling.

DAX (weekly info)
-no change (above mid)
direction=up (1 bar)
high= 7514.46
rev= 6664.40; mid= 7089.43

The Germany market has been pummeled the last five weeks but its still above its weekly 3LB mid. It did close below its SMA921) last week. It also closed below its monthly 3LB mid so the long term outlook has gotten weaker. This week their Manufacturers Orders, Merchandise Trade and CPI are released.

CAC 40 (weekly info)
-no change (above mid)
direction=up (2 bars)
high= 4157.14
rev= 3348.37; mid= 3752.76

France is holding up better than the other markets (for now). It's above its weekly 3LB mid by a fair percentage. It is below its SMA(21) and the other SMA's seem to be converging. Keep an eye on the March lows and the lower trend line.

Russell 2000 (weekly info)
direction=down (2 bars)
low= 809.01
rev= 820.36; mid= 814.69

The Russell 2000 (Feds favorite) is showing major weakness. Even though the SPX has not had a weekly 3LB reversal the Russell has had a reversal and a confirmation. it also had a solid close below its SMA(21). Its MACD(9,15,7) is still moving lower but its Williams %R is oversold.


wunsacon said...


>> @wunsa
>> ...
>> Plus, the thing I hate about when there are Republicans in the White House is that you have to listen to the incessant cacophony of liberals bitching about things 24/7... At least when there's a DEM in the WH, they just parade around all day like everything is fine

That works both ways. Right now, Republicans complain about everything, even though "Obama = Bush III", except when it comes to gays in the military. (And it's quite possible military commanders quietly pushed that as an expediency to deal with low recruiting. IOW, Bush might've done the same thing here.)

AmenRa said...

Let the squeeze begin.

Bulls better not let up since there's a 3, 10 and 30yr auction this week. Won't be long before the PDs can't sell them back to the Fed.

AmenRa said...

Looked at two fibonacci retraces on the DXY checking for overlap. Range one is 1/10/11-5/4/11 and range two is 5/4/11-5/24/11. No overlaps but there are two retraces close to each other. So the area from 73.95 to 74.10 might be important.

Leftback said...

"Bulls better not let up since there's a 3, 10 and 30yr auction this week. Won't be long before the PDs can't sell them back to the Fed."

Agreed. The outlook couldn't be weaker for bonds in the near term, plus what nobody expects is we wake up to a decent jobs number one morning, BUCKY roars out of the traps and the front end gets crushed, 2y back up to 75 bps in a few days, 10y out to 3.50%. That will have a variety of effects on stocks. Not sure when this will happen - but it will, as long as crude and gasoline keeps on dribbling down in price.

Keep an eye on the yen. LB is long EWJ on the thesis that USDJPY has to rally sooner or later, Japan inevitably will have a modest manufacturing recovery, and the US is not as weak as investors think.

wunsacon said...

Looks like I'm going to have to cut back on my trips to the salon:

wunsacon said...

Heh... In that prior comment, I chose a self-deprecating remark instead of ribbing someone in power. But, as I think about an alternative rewrite at the expense of any of our leaders, the "ewww" factor jumps alarmingly. So...leave it be.

QQQq said...

@ wunsa, maybe try Do It Yourself? ,,,wax on - wax off

...and now for something completely different, minimum wage vs. gas prices.

going for a hike over rattlesnake mountain, maybe I can catch my lunch today.

cv said...


Now if you did one of those charts of how many hours worked at minimum wage to get a table dance, you might be onto something...

cv said...

cv said...

cv said...

Does anyone besided CV think it's hilarious that the Nobel Peace Prize winners polling numbers went UP right after he reportedly killed Bin Laden's corpse?

Lefties?... Beuller?... Crickets???

Mel said...

Bueller seems to have left the building...

Fri./ June 4/2010...529 comments

Fri./June 3/2011... 10 comments

...apparently even entropy got bored and left the building.

Mel said...

For those of you who haven't left the building and are sitting on your hands...this is a nice groove and departure point.

AmenRa said...

Busy day. I see the bulls have lost control. Black ice is dangerous if you're moving too fast.

Anonymous said...

"...apparently even entropy got bored and left the building."

The Jews did it. Those tribalist bastards! :-)

ben22 said...

wow look, an ANON comment about Jews

dumb ass

and there is confusion as to why there aren't more comments?

it's not because people are bored with markets.....guess again.

Jennifer said...

I actually thought that was funny....but only because it was obviously poking fun at me.

ben22 said...

I'm not even Jewish, but I find comments like that retarded

find me one perfect culture and statements like that might be legit, and good luck with that.

but hey, free blog right....

BinT said...


Thanks for your thoughts on fixed income.

Since I agree with them, you must be smarter than a French banker...

ben22 said...

"plus what nobody expects is we wake up to a decent jobs number one morning"

is that really a fair statement? I think it is not. Prior to ADP last week consensus was basically across the board optimistic with a lot of "self sustaining" blather to go with it.

In fact, nobody even needs to expect this because it's already been rationalized away, it goes like this

"Reinhart and Rogoff say this is what happens in post credit bubble recoveries, we shouldnt' expect robust job growth"

see how easy?

put another way, the lack of jobs is only seen as transitory.

Mel said...


I'll side with any tribe (regardless of color, creed, or belief system)... that's been kicked around for a few thousand years...and who have managed to turn what little desert they have into a garden...not to mention a nascent ability to nuke the opposition back into a stone age it never left....and frankly, the sooner the better.

FYI...After a couple of pops, I'm more likely to wear my ass on my sleeve...than my heart.

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