Closing Market News July 26, 2007

The Dow closed down 311.50 at 13,473.57 and the Nasdaq closed down 48.83 at 2599.34. Transports closed down 125.70 at 5106.26.

Total volume on the NYSE was heavy trading 2.75 billion shares. Up/down volume was 15.23 to 1 negative, Nasdaq up/down volume was 6.74 to 1 negative.

Sept. E-mini S&P futures closed down 36.75 at 1488.00 and the Nasdaq 100 futures closed down 26.00 at 2000.50. Sept. E-mini S&P futures total volume was very heavy trading 3.65 million contracts. Sept. 30 Yr. T-Bond futures closed up 0-30 at 109-26.

Sept. Oil futures closed down .93 at 74.95 and Sept. Natural Gas futures closed down .03 at 6.03.

August Gold futures closed down 11.30 at 662.70 and Sept. Silver futures closed down .21 at 12.94.

Grains were higher with Sept. Wheat up 17 cents closing at 6.51, Nov. Beans closed up 6 ¾ at 8.46, and Dec. Corn closed up 5 ¼ at 3.32 ¼.

October Live Cattle futures closed up .35 at 97.20 and October Feeder Cattle closed up 0.275 at 117.300. October Lean Hogs closed down 0.925 at 71.050.

“Genius is one percent inspiration and ninety-nine percent perspiration.”

Author: Thomas Alva Edison

AS I SEE IT: When my technical trading strategies turn down it is always possible to get sharp sell-offs, but it is never a sure thing as we’ve seen a couple other times this year. Traders just need to be prepared for the market to trade lower, and of course today was a huge down day as traders continued to worry about lending liquidity. Our trading strategies keep me on the right side of the market no matter where it goes. I’ve always said, “I don’t care where markets go, I just want them to move quickly in one direction or the other.”

The Dow was over 400 points lower an hour and a half before the close. It did rally back from oversold territory to close 311 points lower. The S&P rallied back over 16 points into the close. The S&P ran through support prices like a hot knife through butter. When there is twice the normal volume pushing the market, support prices barely slow down the movement. Now we’ll have to see if there is a little more bounce before another sell-off.

Because I’m in this office watching the market through breakfast, lunch, and dinner most days, there isn’t much market movement I don’t see. This morning before 4:00 A.M. Mountain Time I started getting sell signals in the E-mini S&P that proved to be great even before the regular market session opened. The Oil market also traded very well for me today, but because I was having so much fun trading those markets I didn’t even trade the Soybeans.