Wednesday, August 8, 2007

Closing Market News August 8, 2007

The Dow closed up 153.56 at 13,657.86 and the Nasdaq closed up 51.38 at 2612.98. Transports closed up 72.02 at 5079.39.

Total volume on the NYSE was above average trading 2.58 billion shares. Up/down volume was 3.01 to 1 positive, Nasdaq up/down volume was 3.34 to 1 positive.

Sept. E-mini S&P futures closed up 21.50 at 1504.00 and the Nasdaq 100 futures closed up 25.25 at 1999.25. Sept. E-mini S&P futures total volume was above average trading 2.71 million contracts. Sept. 30 Yr. T-Bond futures closed down 1.07 at 108-31.

Sept. Oil futures closed down .27 at 72.15 and Sept. Natural Gas futures closed up .01 at 6.22.

Dec. Gold futures closed up 4.20 at 686.50 and Sept. Silver futures closed up 0.075 at 13.170.

Grains were higher with Sept. Wheat up 16 ½ cents closing at 6.79, Nov. Beans closed 15 ¼ higher at 8.78, and Dec. Corn closed up 5 ½ at 3.57 ½.

October Live Cattle futures closed down 0.275 at 95.600 and October Feeder Cattle closed down .05 at 115.25. October Lean Hogs closed down .0625 at 71.950.

“When you smell smoke in a Gunpowder Factory, don’t try to find the fire, run for the door.”

Author: Ray Olson

AS I SEE IT: The market gapped up on the open this morning and rallied for the first hour and a half on good Cisco earnings. The S&P formed a bear-flag for the next hour and a half, and then proceeded in an orderly fashion to climb up 27.50 points to a high of 1510.50. Rumors about Goldman Sachs having financial problems started a sell-off, and the E-mini S&P dropped 27.25 points before Goldman put out a statement that the rumor was false. The E-mini S&P rallied up 20 points into the close. The Dow lost over 200 points from the high before recovering to close up 153.56 points.

Trading this market isn’t for the faint of heart. The extreme volatility continues, and usually that puts fear into ordinary investors. Today the housing stocks and the financials rallied on up. It looks like a short- squeeze to me, but only the next few days will tell me if that’s right or not.

Trading patterns in the E-mini S&P and the Oil contract fit our trading strategies very well. Large trading ranges and fast markets are the best for day-traders with the proper trading strategies, but these markets are very dangerous for anyone without the proper training.


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