Closing Market News August 10, 2007

The Dow closed down 31.14 points at 13,239.54 and the Nasdaq closed down 11.60 at 2544.89. Transports closed down 9.20 at 4961.73.

Total volume on the NYSE was above average trading 2.52 billion shares. Up/down volume was 1.22 to 1 negative. Nasdaq up/down volume was 1.59 to 1 negative.

Sept. E-mini S&P futures closed down 7.00 at 1451.00 and the Nasdaq 100 futures closed down 16.50 at 1929.00. Sept. E-mini S&P futures total volume was very heavy trading 3.63 million contracts. Sept. 30 Yr. T-Bond futures closed up 0-06 at 109-10.

Sept. Oil futures closed down .12 at 71.47 and Sept. Natural Gas futures closed up .23 at 6.82.

Dec. Gold futures closed up 8.80 t 681.60 and Sept. Silver futures closed up 0.165 at 12.870.

Grains were mixed with Sept. Wheat closing down 6 ½ at 6.67, Nov. Beans closed down 6.00 at 8.71 ¾, and Dec. Corn closed up 1 ¾ at 3.50 ½.

October Live Cattle futures closed down .30 at 94.55 and October Feeder Cattle closed down .40 at 115.30. October Lean Hogs closed down .40 at 70.80.

“If you refuse to take a shot, you’ll be wrong 100% of the time.”

Author: Ray Olson

AS I SEE IT: The S&P started the day sharply lower after the big down-day on Thursday. After support held early, the market rallied up filling the overnight gap. It spent the next 2 ½ hours backing and filling before rallying again into the regular session close. During the last 15 minutes of trading the E-mini S&P fell 10 points, closing 7 points lower on the day.

The credit problems the financials face are not going to go away soon. The Fed had to add liquidity to the banking system 3 times on Friday. Overseas banks were doing the same thing. If they throw enough money at the problem it can relieve the pain for a very short time, but I believe it’s going to take time to heal this credit crunch.

Day-trading was very good for me in the E-mini S&P and the Oil contracts. I didn’t trade the Soybeans again today. The E-mini S&P traded over 3.6 million contracts, so volatility is the name of the game. I have to quickly set buy & sell stops to take advantage of this kind of movement. It leaves very little time to concentrate on other markets.