Dow futures found support overnight at 12,319. Currently we are 150 pts higher than that low. It seems to me that the Europeans and Asians tried to run the tables lower overnight. Remember, in 2 more weeks, Europe shuts down for vacation. This could crystallize any bearish desire to break the indexes, cover their profits, and then sit on the beach drinking gin/tonic/ no ice.
My opinion has not changed. 12,243 is my next buy target. 12,356 was hit in Dow futures. final Buy target 12,130. If it gets there, I really want to load up on the buy side.
For the S&P, 1291 would be a great buy. Overnight our low was 1295.30. We are currently trading at 1313.
Honestly, I think this was a bear raid to try to buy indexes on the panic of Italy. Suddenly the market cares about Italy? Seriously?
Now, if all the PIIGS go bye bye, well then, we really will have a melt down of biblical proportion. I understand that. I just don’t see that really happening.
If you think that is going to happen, then place your bets.
Buy S&P puts at 1200, and 1100. Buy Dow puts at 10,000, 9,000, down to the old low at 6500… Because if this really is the second shoe to drop internationally, then you should profit from your opinion.
My opinion is to buy dips, but with reasonable sell stops, looking for a resumption of the general rally we’ve seen in the last 2 1/2 years.
Very Quickly,
Wheat numbers bearish, corn numbers bullish, beans neutral on this morning’s SD numbers from the USDA.
Should be volatile trade.
CER