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E-Mini S&P 500 needs some traction!
Another day for the E-Mini S&P 500 to retrace! Rumors spread about the Libyan President, Maummar Gaddafi, being shot. The Crude Oil has been trading inversely to the E-Mini S&P 500 as it hit levels around $103.00 on fears regarding the unrest in Libya as a threat to our oil supply. In reality, the daily supplies from Libya would be very small in comparison to our total usage. Saudi Arabia came in with a statement to suggest that they would ramp up their production to compensate.
Will the E-Mini S&P 500 spring back after the tumble?
Today, we had a continuation of yesterday’s action as Libyan violence dominated the news. The US and many other countries have taken measures to evacuate Libya of their citizens. 10,000 are being evacuated by the Euro Zone. The bloodshed is considered totally unnecessary and yet the US remains on the sidelines. There was talk of freezing Libyan assets, but so far our government has walked softly around this dilemma. Senator Kerry and Secretary of State Hillary Clinton have made statements regarding the appalling violence.
Suddenly the world makes sense again if only for a minute..........
What goes up must come down!
Finally, the E-Mini S&P 500 had its dip or retracement. Muammar Gaddafi had been the leader of Libya since a coup in 1969. His power had endured 4 decades. When thinking of the ruler, one normally would note the anti-western policies. The unrest in Libya and the pressure on the US Government Officials to help the people of Libya have the market in a tailspin. The tanks, helicopters and war planes of Gaddafi were released on the demonstrators to squelch the protests. Senator John Kerry has been a voice against the treatment of the people of Libya and Secretary of State Hillary Clinton should make a statement today on the appalling violence. These tensions grew since the Reagan years. The delicate balance of alliances and adversaries are of extreme importance to the US as clearly any fracture could cause potential US involvement.
High unemployment and lackluster home sales can pressure the rate of the recovery. The market today has reflected the tired bull. Technical damage may be the game changer in terms of the week’s action. The market is subject to technical weakness and the CBOE Volatility Index rose accelerating the fear barometer.
Is there enough Silver in the Comex Warehouse to cover the 53,000 contracts due for delivery in 6 days?
What does China think about us stiffing our own old peole in Pritchard Alabama?
Is America on the verge of bankruptcy?
How many collectors does China have in their collection department?
Are we worried yet?
Tune in and find out...
Our Weekly Trading Zones are already cast in stone as they are every Sunday night. However, there's a good chance that we may be off this week like we've never been before. Geo-political tension is the engine that will drive Wall Street tomorrow. Unless we see a bounce on the London open, it's going to get drastically ugly. This has been a long time coming so if this really is it, hang on to your hat. However it plays out we'll talk you through it.
If you missed our friend Jason Hommel's article over the weekend, I encourage you to take a look.
Quit Trying to Sell This Market!!!
Despite China raising there bank reserve requirement overnight and antigovernment demonstrations in the Middle East, the SP EMINI market posted new highs. The US market felt a little heat overnight when the Bank of China made the announcement but good earnings from Caterpillar (CAT) and other corporate news pushed the market higher. Today the volume was light with this move higher and the VIX is gradually growing. A higher VIX means the “fear gauge” is building up at these levels especially going into a 3 day weekend. Some commodities were BIG winners today Silver (31-year high) and Crude Oil. Weekly Trading Zones (WTZ) which are published for “members only” on Sunday night came in at 1340/1341 on the top end today and 1334/1335 on the bottom end.
Between the Lines