Closing Market News August 3, 2007

The Dow closed down hard 281.42 points at 13,181.91 and the Nasdaq closed down 64.73 at 2511.25. Transports closed down 190.55 at 4873.81.

Total volume on the NYSE was above average trading 2.04 billion shares. Up/down volume was 11.30 to 1 negative, Nasdaq up/down volume was 6.32 to 1 negative.

Sept. E-mini S&P futures closed down 38.75 at 1443.00 and the Nasdaq 100 futures closed down 40.50 at 1939.50. Sept. E-mini S&P futures total volume was above average trading 2.67 million contracts. Sept. 30 Yr. T-Bond futures closed up 0-16 at 110-23.

Sept. Oil futures closed down 1.38 at 75.48 and Sept. Natural Gas futures closed down 0.0060 at 6.10.

Dec. Gold futures closed up 7.80 at 684.40 and Sept. Silver futures closed up 0.163 at 13.158.

Grains were higher with Sept. Wheat up 8 ¼ cents closing at 6.50, Nov. Beans closed up 6 ½ at 8.61, and Dec. Corn closed up 1 ¾ cents at 3.43.

October Live Cattle futures closed down 0.175 at 97.975 and October Feeder Cattle closed down 0.125 at 117.200. October Lean Hogs closed up 2.90 at 77.60.

“Attitude determines the altitude of life.”

Author: Edwin Louis Cole

AS I SEE IT: The short-term daily market trend continued down today as the Dow fell 281.42 points and the S&P was 38.75 lower. The credit problems that are causing this drop are not going to go away quickly. Now we’ll see what the Fed has to say about it next Wednesday.

I believe this market will have some sharp swift rallies as soon as enough traders get short. With very bearish news that shouldn’t take too long. In the meantime, I’m going to go with the short-term movement.

The market gave me sell-signals in the E-mini S&P immediately after the open today, and after a very choppy mid-day the selling continued. Because I was having such a good time trading the E-mini I only took a couple Oil trades for modest profits. I didn’t trade the Soybeans because I can’t concentrate on the momentum of more than a couple markets when there is a lot of action.

ALL MY DAY-TRADING STRATEGIES ARE IN THIS E-BOOK.