Thursday, July 15, 2010

Technical Picture - Markets Mixed

The S&P broke support of its prior two day trading range with the 10:00 release of the Philly Fed data (5.1 vs. 10.1). Price swooned, but gap fill support held. Prices eventually retraced back to yesterday's range in lackluster fashion. And just when the bears regained control, heading for a weak close, news that BP had managed to stop the oil flow and that the SEC was going to release a statement (potential GS settlement), the market reversed and erased all of its losses. Hallelujah!

Futures holding up well after hours despite GOOG's earnings miss. CPI data in pre-market and Michigan sentiment at 9:55. BAC, C, and GE earnings in pre-market. AAPL conference to explain fix for iPhone 4.

Ag/Chem was the clear winner of the session with POT pacing the way. A weaker dollar contributed to the strength, but the key factor propelling Ags higher are crop futures which were solidly in the green again today. The high heat in corn growing areas is another significant factor. I never thought I'd be following crop and weather futures.



The POT entry is just above the previous two day trading range. It still had plenty of room to move prior to hitting 50 DMA as opposed to AGU which was testing 200 DMA.

Took a partial at the 100% Fib. extension.

By EOD it tagged 150% level.