Mid-Day Update
Hi Everyone, I'm back from the land down under, so let's get caught up on what's going on. The market is lower today, based on a number of factors. The government was trying to sell some of it's ownership in Citi in order to pay back the US taxpayer, however there weren't a lot of takers and share price has dropped below the initial purchase price from the government. The lack of interest is certainly concerning about the long term viability of Citi, or at least the negative view of Citi in the short term.
Change of character?
Well, almost but not quite. In the morning trade, strangely the dollar was up big and the market was up as well. You had to wonder, was the correlation with the dollar finally ending? Right about the time you finished that thought, the market began to sell off. So as of this writing, the dollar is stronger and the market is weaker. Same bat time, same bat channel...... The dollar looks a bit overbought now short term, so the close today will be very interesting.
Thursday's Open
The market looks to open to the upside on yep, a weaker dollar. The theme is still the same. If the market is able to recover the all important 1100 level again, we have more new trades ready to go.
Today's trade will tell us a lot, so stay tuned for more in-depth commentary.
Preparing for Monday's Trade
The big news on Friday was the much lower than expected job losses which immediately spiked the futures prior to the open. The market opened higher and then around 10am dropped in a hurry. It was like all of a sudden someone realized, "wait a minute, if the economy is actually improving the Fed will have to start raising rates sooner." The dollar took off to the upside logging in the biggest one day gain in quite a while. We know the drill, stronger dollar weaker market. The market still managed to close to the plus side, but just barely and well off the earlie