Closing Market News July 12, 2007

The Dow closed up 283.86 at 13,861.73 and the Nasdaq closed up 49.94 at 2701.73. Transports closed up 53.97 at 5341.48.

Total volume on the NYSE was average trading 1.66 billion shares. Up/down volume was 7 to 1 positive, Nasdaq up/down volume was 5.52 to 1 positive.

Sept. E-mini S&P futures closed up 24.75 at 1555.75 and the Nasdaq 100 futures closed up 25.25 at 2034.75. Sept. E-mini S&P futures total volume was above average trading 1.62 million contracts. Sept. 30 Yr. T-Bond futures closed down 0-18 at 106-20.

August Oil futures closed down .01 at 72.55 and August Natural Gas futures closed down .10 at 6.50.

August Gold futures closed up 6.20 at 668.30 and Sept. Silver futures closed up 0.205 at 13.180.

Grains were mixed with Sept. Wheat closing down ½ cent at 6.68 1/4, Nov. Beans closed up 18 ¾ at 9.41 ½, and Dec. Corn closed up 9 ¾ at 3.65 ¼.

August Live Cattle futures closed down 0.125 at 92.125 and August Feeder Cattle closed down 0.325 at 114.300. August Lean Hogs closed up 3.00 at 74.075.

“As human beings, our greatness lies not so much in being able to remake the world – that is the myth of the atomic age – as in being able to remake ourselves.”

Author: Mohandas Gandhi

AS I SEE IT: Yesterday the market closed with a surge that put the S&P above my short-term buy signals. Overnight the market traded sideways in an accumulation formation and at the opening bell this morning it started moving higher, gaining strength as the day progressed. I believe that much of today’s huge rally was caused by short positions getting stopped out. It was reported that there was 45 billion dollars held short in the S&P. I would have liked to see twice the volume if new buyers were coming into the market.

This has been a very powerful bull market. My intermediate and long-term strategies have not turned down this year. For the last four months in a row the monthly chart has been showing higher lows every month. For sure there are a lot of negatives that all of us can talk about, but for me the charts tell the story, and the story for now is showing that the bull market is alive and well.

Day-trading was excellent in the S&P, Soybeans, and the Oil market today.

Have as much fun trading as I do.

Ray