Closing Market News August 24, 2007

The Dow closed up 142.99 at 13,378.87 and the Nasdaq closed up 34.99 at 2576.69. Transports closed up 54.87 at 4915.95.

Total volume on the NYSE was very light trading 1.17 billion shares. Up/down volume was 5.73 to 1 positive, Nasdaq up/down volume was 4.11 to 1 positive.

Sept. E-mini S&P futures closed up 17.00 at 1483.50 and the Nasdaq 100 futures closed up 30.00 at 1969.50. Sept. E-mini S&P futures total volume was below average trading 1.19 million contracts. Sept. 30 Yr. T-Bond futures closed up 0-09 at 110-31.

Sept. Oil futures closed up 1.42 at 71.25 and Sept. Natural Gas futures closed down .10 at 5.52.

Dec. Gold futures closed up 9.10 at 677.50 and Sept. Silver futures closed up .30 at 11.94.

Grains were mixed with Sept. Wheat up 3 ¼ cents at 7.25 ¾, Nov. Beans closed up 6 ¾ at 8.56, and Dec. Corn closed down 3 ¼ at 3.58 ¾.

October Live Cattle futures closed up 0.975 at 97.825 and October Feeder Cattle closed up .80 at 118.30. October Lean Hogs closed up 2.175 at 70.650.

“Imagination is everything. It is the preview of life’s coming attractions.”

Author: Albert Einstein

AS I SEE IT: The New Homes Sales report was strong this morning and the market rallied closing at the high up 142.99 points. The S&P has rallied 108 points in the last 7 days. Our day-trading strategies gave a buy signal in the S&P that lasted all day today. Volume is very light and many times markets float up on light volume. It looks to me like long-term traders who had heavy shorts are getting stopped out on the long-side now. Even with the light volume the S&P traded in a 20 point range today. I believe that when a daily low is broken sellers will start pushing the market down again, but until that happens the day-traders will continue to buy.

Day trading was very good in the E-mini S&P and the Oil contract today. I didn’t trade the Soybeans because there was no momentum in that contract.

THIS WEEKEND I’M GOING TO SEND WORKBOOK AND E-BOOK OWNERS SOME REFRESHER DAY-TRADING CHARTS. EMAIL ME WITH ANY OF YOUR TRADING QUESTIONS.