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Jeff Bailey : 6/19/2007 12:04:28 AM

Adolor (ADLR) $3.87 -0.76% is moving from the Russell 2000 to the Russell Microcap Link

Jeff Bailey : 6/18/2007 11:51:27 PM

Russell 2000 Deletions ... I won't be able to try and "match" all of the Russell 3000 deletions against those Russell 2000 (RUT.X)/IWM current components, but here's what I've got so far Link

Per the Russell 3000 list of DELETIONS (175 total), so far all those from Access Integrated down thru Covad Communications have been RUT.X/IWM components. There isn't a notable difference in WEIGHTINGS when you've got 2000 stocks comprising an index, but those with rather "small" market caps carry very little weight.

Even when I added another 22 observations (Cadence Financial thru Covad Comm.) the "Subtotal's" still come out very closely matched at +0.96% and +0.93% since 6/11/07 benchmarking closes. Of the "Total" 40 observations, they've risen 0.94% since 6/11/07 Close.

Since 6/11/07 close, the RUT.X has risen from 833.18 to 846.28, representing a gain of 1.57%.

Keene Little : 6/18/2007 10:37:04 PM

Each of the 4 indices look essentially the same as far as needing more of a pullback before ready to rally again. It can always turn higher immediately Tuesday (or head directly lower as per the dark red bearish counts) but these 60-min charts show how the patterns would look best by following the green bullish wave counts:
DOW: Link
SPX: Link
NDX: Link
RUT: Link

Keene Little : 6/18/2007 10:29:41 PM

Tuesday's pivot tables: Link and Link

OI Technical Staff : 6/18/2007 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 6/18/2007 5:26:40 PM

July Unleaded (rb07n) settled up $0.0042, or +0.19% at $2.2643.

Jeff Bailey : 6/18/2007 5:25:56 PM

July Crude Oil (cl07n) settled up $1.09, or +1.60% at $69.09.

Jeff Bailey : 6/18/2007 5:24:58 PM

Closing US Market Watch found at this Link

Jeff Bailey : 6/18/2007 4:44:06 PM

Closing Internals found at this Link

Jeff Bailey : 6/18/2007 4:37:27 PM

NYMEX Nat. Gas Loses Nearly 3% On Cooler Weather Forecast ... July Nat. Gas futures (ng07n) settled down $0.2280, or -2.88% at $7.69.

Jeff Bailey : 6/18/2007 4:26:23 PM

Yahoo! Executive Shuffle ... Company Press Release Link

Jeff Bailey : 6/18/2007 4:21:31 PM

Yahoo! Inc. (YHOO) $28.12 +2.96% ... surging to $29.45 extended.

Keene Little : 6/18/2007 4:20:16 PM

It continues to look like a nice setup for a long play tomorrow but not until it drops a little lower first. They're all pretty much in synch saying the same thing. If you're short there's probably not much left to get but it's too early to get long. We wait for the consolidation to finish.

Jeff Bailey : 6/18/2007 4:15:24 PM

Current OPEN MM Profiles that I've made and Watch List found at this Link

Jeff Bailey : 6/18/2007 3:58:26 PM

BHP WON'T COMMENT ON ALCOA BID (updated)

DJ- Mining giant doesn't comment on a report that it is considering a bid for Alcoa, the world's largest aluminum producer. Analysts, however, don't dismiss the possibility BHP is scouting around for sizable takeover targets.

Jeff Bailey : 6/18/2007 3:57:46 PM

HIGH COURT RULES FOR BROKERAGES

DJ- Supreme Court rules 7-1 that Wall Street firms are immune from a class-action lawsuit brought under federal antitrust laws over alleged conduct on IPOs during the 1990s technology bubble.

Jeff Bailey : 6/18/2007 3:56:32 PM

MERRILL POSTPONES AUCTION OF BEAR FUND COLLATERAL (update)

DJ- Merrill Lynch delays its planned auction of $400 million worth of collateral assets from the High-Grade Structured Credit Strategies Enhanced Leveraged Fund, a troubled Bear Stearns hedge fund, giving the fund's managers additional time to present a plan for salvaging it, say people familiar with the matter.

MER $89.83 -0.44% ...

BSC $147.91 -1.45% ...

Jane Fox : 6/18/2007 3:55:50 PM

Well it looks like crude broke its resistance this time and was able to follow through on the break. Link

Jane Fox : 6/18/2007 3:47:45 PM

DAX made a new yearly high as well. Link

Jane Fox : 6/18/2007 3:46:24 PM

The market that is out performing the rest is the NAZ Composite. It actually was able to ekk out a new yearly high today. Link

Jane Fox : 6/18/2007 3:45:09 PM

And the SPX. Link

Jane Fox : 6/18/2007 3:44:33 PM

Same story for the DOW. Link

Jane Fox : 6/18/2007 3:43:57 PM

The Russell had 3 days of gains since the lows on June 12th so today's sideways move is of no surprise. Link

Jane Fox : 6/18/2007 3:42:20 PM

No market has been able to break its PDH so far and all except NQ have broken their respective PDLs. Link

Jeff Bailey : 6/18/2007 3:36:01 PM

Russell Reconstitution Deletions (partial list) found at this Link

On average, these stocks (18), if totaled to current trade would be up 0.40% from their 06/11/07 Close.

Jeff Bailey : 6/18/2007 3:13:15 PM

03:00 Internals found at this Link

Jeff Bailey : 6/18/2007 3:04:06 PM

03:00 Market Watch found at this Link

Keene Little : 6/18/2007 3:00:18 PM

The RUT's pattern has me guessing too much but its short term pattern over the past two days gives me the impression that it too needs another leg down as part of its pullback before we see another rally leg.

Keene Little : 6/18/2007 2:57:24 PM

As it turns out I was correct in saying that NDX would be a little more bullish today than the others but that's not saying much. The pattern over the past two days suggests the same thing as for the DOW and SPX--a little more downside work to finish the consolidation and then another rally leg. Link

Jeff Bailey : 6/18/2007 2:54:01 PM

Bank of Granite (GRAN) $7.90 +2.73% ... rather strong since 6/11/07. Was a deletion for Russell reconstitution. Up 7.45% since 6/11 close.

Keene Little : 6/18/2007 2:44:32 PM

The update to the DOW's 60-min chart is essentially the same as Sunday night's chart--the bull flag looks the same as I've been showing for SPX. The only question is where and when it will end. I'm thinking it will chop lower still and then hopefully offer a low-risk opportunity to get long for perhaps a 200-pt run by the time it's finished. Link

Keene Little : 6/18/2007 2:38:19 PM

I'm having trouble posting charts from my laptop (Cingular problem) so back to my QCharts for a look at today's price (in)action. The bull flag is still the best interpretation of what's been going on since Friday's high. The hard part is figuring out when and where it will end. Link

I'm showing another leg down to finish the correction but it could rally straight from here or take most of tomorrow to continue chopping lower to the bottom of the parallel up-channel I've drawn in (light blue). But so far I like the pattern for a continuation higher and I like the wave count for another opportunity for a longer term short play once it finishes rallying.

Jeff Bailey : 6/18/2007 2:20:12 PM

Russell Reconstituion US Deletions (06/15/07 Update) at this Link

Jeff Bailey : 6/18/2007 2:18:58 PM

Russell Reconstitution US Additions (6/15/07 Update) at this Link

Jeff Bailey : 6/18/2007 2:01:52 PM

NAHB June Housing Index ... consensus was 29.

Jeff Bailey : 6/18/2007 2:00:09 PM

US NAHB June Housing Index 28 Vs. 30 In May

DJ- Home builders, worried about subprime loan problems and rising mortgage rates, are losing their confidence, which has dropped to the lowest level in 16 years, a new report said Monday.

The National Association of Home Builders' index for sales of new, single-family homes decreased in June to 28 from 30 in May.

The reading of 28 marked the lowest point in the index since February 1991.

"It's clear that the crisis in the subprime sector has prompted tighter lending standards in much of the mortgage market, and interest rates on prime-quality home mortgages have moved up considerably during the past month along with long-term Treasury rates," NAHB chief economist David Seiders said.

Seiders predicts home sales will erode in the months ahead and that improvements in housing starts probably will not be recorded until early next year. "As a result, we expect housing to exert a drag on economic growth during the balance of 2007," he said.

Within the NAHB's housing market index, the component for present sales of single-family homes fell to 29 in June from 31 in May.

Expectations for sales in the next six months dropped in June to 39 from 41 in May, the NAHB said. The traffic of prospective buyers slipped to 21 from 22.

The index in June was based on a survey of 409 home builders, who answer questions about sales prospects now and in the near term. When the Housing Market Index exceeds 50, it means the number of builders who see "good" sales outnumber the number who see "poor" sales. The numbers used in compiling the index are adjusted for seasonal variations.

Jeff Bailey : 6/18/2007 1:54:22 PM

US 6-Month Bills Auction: 4.715%; 50.8% At High

DJ- The U.S. Treasury awarded $14.00 billion in six-month bills at Monday's auction at a high rate of 4.715%.

The Treasury received bids totaling $34.92 billion and accepted $14.00 billion, including $1.56 billion of noncompetitive tenders. The dollar price was 97.616306 and the investment rate, or bond-equivalent return, was 4.911%.

The Treasury also sold $200.00 million of six-month bills to foreign and international monetary authority accounts on a noncompetitive bidding basis.

The bid-to-cover ratio, an indication of demand, was 2.49, Treasury said.

Tenders submitted at the high yield were allotted 50.80%.

The median rate was 4.700%; that is, 50% of the amount of accepted competitive bids were tendered at or below that rate.

Of the competitive bids accepted, 5% were tendered at or below the rate of 4.650%.

The Federal Reserve purchased $14.70 billion in bills for its own account in Monday's three- and six-month bill auctions. When the auction was announced, the Fed held $20.14 billion of maturing bills.

The bills awarded to the Federal Reserve are in addition to the public offering amount.

Accepted indirect bids for the six-month bill were 25.1% of the total competitive amount, up from 21.9% in last week's six-month bill auction.

The high rate was down from 4.765% at the previous six-month bill auction.

The high rate was the lowest since the rate of 4.700% at the six-month bill auction on April 10, 2006.

The issue is dated June 21 and matures on Dec. 20, 2007.

Jeff Bailey : 6/18/2007 1:51:00 PM

13-week Treasury Bill Yield ($IRX.X) down 3.5 bp at 4.395% ...

Keene Little : 6/18/2007 1:48:02 PM

The ES 1549 level held so now we'll see if it's going to drop back down to the bottom of the bull flag which is currently near 1542.50. If it continues to drop lower then it could close Friday's gap and find support at a 38% retracement (at 1536.50) of the leg up from last Tuesday, June 12.

Jeff Bailey : 6/18/2007 1:49:37 PM

US 3-Month Bills Auction: 4.490%; 95.43% At High

DJ- The U.S. Treasury awarded $14.00 billion in three-month bills at Monday's auction at a high rate of 4.490%.

The Treasury received bids totaling $37.47 billion and accepted $14.00 billion, including $1.74 billion of noncompetitive tenders. The dollar price was 98.865028 and the investment rate, or bond-equivalent return, was 4.617%.

The Treasury also sold $210.00 million of bills to foreign and international monetary authority accounts on a noncompetitive bidding basis.

The bid-to-cover ratio, an indication of demand, was 2.68, Treasury said.

Tenders submitted at the high yield were allotted 95.43%.

The median rate was 4.470%; that is, 50% of the amount of accepted competitive bids were tendered at or below that rate.

Of the competitive bids accepted, 5% were tendered at or below the rate of 4.450%.

The Federal Reserve purchased $14.70 billion in bills for its own account in Monday's three- and six-month bill auctions. When the auction was announced, the Fed held $20.14 billion of maturing bills.

The bills awarded to the Federal Reserve are in addition to the public offering amount.

Accepted indirect bids for the three-month bill were 19.2% of the total competitive amount, down from 24.4% in last week's three-month bill auction.

The high rate was down from 4.640% at the previous three-month bill auction.

The high rate was the lowest since the rate of 4.450% at the three-month bill auction on Feb. 21, 2006.

The issue is dated June 21 and matures on Sept. 20, 2007.

Jeff Bailey : 6/18/2007 1:29:06 PM

01:15 Internals found at this Link

Jeff Bailey : 6/18/2007 1:17:06 PM

01:15 Market Watch found at this Link

Jeff Bailey : 6/18/2007 1:08:29 PM

Baidu.com (BIDU) $147.98 +3.43% ... new all-time high.

Jeff Bailey : 6/18/2007 1:00:50 PM

Valero Energy (VLO) $77.62 +1.46% ... also a new all-time high.

Jeff Bailey : 6/18/2007 1:00:20 PM

PetroChina (PTR) $142.74 +2.21% ... notable new all-time high.

Jeff Bailey : 6/18/2007 12:54:59 PM

May have seen some technical selling in Treasuries at their open. 10-year Yield backfilled its 6/12/07 gap higher from 6/11 close of 5.137% to 6/12/07 open of 5.185%.

Jeff Bailey : 6/18/2007 12:50:48 PM

10-year Yield ($TNX.X) choppy ... down 1.4 bp at 5.157%. BELOW Weekly Pivot.

Jeff Bailey : 6/18/2007 12:49:27 PM

BIX.X 403.76 +0.45% ... 405 is "key" ... se Monday's Market Wrap. 405.84 is WEEKLY R1.

Most likely the "trigger" for next rally leg.

Jeff Bailey : 6/18/2007 12:46:11 PM

CME's Feb'08 and May'08 Regional Housing Futures at this Link

Keene Little : 6/18/2007 12:44:19 PM

With the ovelapping highs and lows in the bounce so far it doesn't give me the impression that another rally leg has started. ES 1549 is now the top of its bull flag so watch for resistance there and the potential for another leg down within its flag pattern. But, a strong break above 1549 could spark some buying/short covering in which case it should be a good time to get long. Right now the market is just very lethargic.

Jeff Bailey : 6/18/2007 12:42:15 PM

CME's Nov07 Regional Housing Futures Table at this Link

New York Metro and San Francisco holding at contract highs shows "bright spots" in places, but broader rather unchanged.

Recent BOSTON Beige Book Link

NEW YORK Beige Book Link

CHICAGO Beige Book Link

SAN FRANCISCO Beige Book Link

Jeff Bailey : 6/18/2007 12:24:39 PM

CME's Aug07 Regional Housing Futures Table at this Link ... pretty much flat for last three weeks.

Jeff Bailey : 6/18/2007 11:50:45 AM

S&P Banks Index (BIX.X) 403.08 +0.28% Link ... +1.01% from last Monday's close.

Jeff Bailey : 6/18/2007 11:46:07 AM

S&P 500 Index (SPX.X) Link ... is up a half point, or +0.03% at 1,533.

Jeff Bailey : 6/18/2007 11:44:34 AM

European Markets:

The FTSE-100 ($FTSE) Link ... is off by 20 points, or -0.30% at 6,712.

The DAX ($DAX) Link ... is edging higher by 13 points, or +0.16% to 8,043.

France's CAC-40 ($CAC) Link ... is lower by 14 points, or -0.23% at 6,091.

Keene Little : 6/18/2007 11:41:36 AM

The top of the bull flag for ES is near 1550 so if it pushes a little higher here then watch that level for resistance. A break above it that holds would be a good signal that the next rally leg has in fact begun.

Jeff Bailey : 6/18/2007 11:40:10 AM

Asian Markets: ...

Japan's Nikkei-225 ($NIKK) Link ... was up 178 points, or +0.99% at 18,149.

The Hang Seng ($HSI) Link ... surged higher by 565 points, or +2.69% to 21,582.

The Shanghai Composite ($SSEC) Link ... jumped higher by 120 points, or +2.92% to close at 4,253.

Keene Little : 6/18/2007 11:28:19 AM

Watching ES here, the bounce off this morning's low just tagged 1548 where it has two equal legs up. If it's going to consolidate a little longer with another minor low in its bull flag then watch for a turn back down here.

Jeff Bailey : 6/18/2007 11:16:56 AM

Friday's SPX and RUT NH/NL .... SPX's NH/NL was 72:0

RUT's NH/NL was 161:8. The 161 NH for the RUT exceeded the 156 from 6/01/07.

Jeff Bailey : 6/18/2007 11:15:36 AM

11:00 Internals found at this Link

Jeff Bailey : 6/18/2007 11:02:26 AM

11:00 Market Watch found at this Link

Jeff Bailey : 6/18/2007 11:00:28 AM

Current OPEN MM Profiles that I've made and Watch List at this Link

Jane Fox : 6/18/2007 10:54:48 AM

I need to leave for a few hours.

Jeff Bailey : 6/18/2007 10:48:57 AM

SAUDI KING CONCERN OVER LOCAL CONFLICTS

DJ- Saudi Arabia's King Abdullah, a key player in Middle East politics, says he fears conflicts in the Palestinian territories, Lebanon and Iraq could become a global one, adding that his monarchy was making great efforts to reach peace.

Jeff Bailey : 6/18/2007 10:46:50 AM

MIDEAST, ASIAN FIRMS VIE FOR AZERI OIL FIELD COMPANY

DJ- Middle-Eastern and Asian firms have approached Caspian Energy Group, a key Azeri-operating oil company, with some possible offers at over $1 billion, people familiar with the talks tell Dow Jones Newswires.

Jeff Bailey : 6/18/2007 10:43:31 AM

WENDY'S CUTS VIEWS, TO EXPLORE SALE

DJ- Special committee which is reviewing the fast food chain's strategic options decides to explore a possible sale of the company. Company cuts 2007 EPS guidance to $1.09-1.23 from $1.26-$1.32.

WEN $38.57 -2.91% ...

Keene Little : 6/18/2007 10:42:40 AM

I'm experimenting with posting charts from my QuoteTracker which runs on my laptop (QCharts is on my desktop) which I'm taking out to the "hangar" with me as I start working on my airplane with my father. I'll keep the laptop connected to the internet with the wireless card (as long as it keeps working) and will be able to monitor the market with you throughout the day and post chart setups. But I have to use these QuoteTracker charts during the day so I hope you don't mind. For now (until QT fills in the missing data on the cash indices) I'll be using the futures charts so here's the ES setup for the potential move higher out of this consolidation: Link

Jeff Bailey : 6/18/2007 10:42:27 AM

GE, PEARSON DISCUSS JOINT BID FOR DOW JONES

DJ- As Dow Jones controlling Bancroft family continues to fret about selling to Rupert Murdoch, General Electric and Financial Times publisher Pearson are in talks about making a joint bid for Dow Jones that would allow the family to keep a minority interest. The privately held joint venture would be owned equally by GE and Pearson, with the Bancrofts holding a minority stake, sources say.

DJ $58.65 -0.61% ...

NWS $23.54 -1.75% ...

GE $38.01 -0.28% ...

Jeff Bailey : 6/18/2007 10:39:54 AM

MERRILL LYNCH SEIZES HEDGE FUND ASSETS

DJ- Concerned that an internal hedge fund at Bear Stearns Cos. wouldn't be able to meet a margin call, Merrill Lynch, one of the fund's biggest lenders, seizes $400 million of its assets and is preparing to auction them off.

MER $89.55 -0.76% ...

BSC $146.96 -2.08% ...

Jeff Bailey : 6/18/2007 10:38:17 AM

BHP AGAIN TURNS ITS ATTENTION TO ALCOA

DJ- BHP Billiton, the world's largest mining company, has revived plans for a $40 billion takeover of Alcoa the aluminum producer, according to The Times in London.

Keene Little : 6/18/2007 10:22:17 AM

Two equal legs down from Friday's high for SPX is at 1528.90 so this correction could be over sooner than this afternoon. Watch for potential support around the 1529 area to try the long side.

Jeff Bailey : 6/18/2007 10:18:36 AM

VXN.X 16.69 +4.70% ...

Jeff Bailey : 6/18/2007 10:18:15 AM

Swing trade bullish call stopped alert ... with the shares of Monster Worldwide (MNST) $43.90 -2.30% ... Stopped in the MNST Sep $45 Call (BSQ-II) at the bid of $3.20. ($3.20 x $3.40)

Jeff Bailey : 6/18/2007 10:16:45 AM

ICI REJECTS AKZO'S $14.26 BILLION OFFER

DJ- Shares in Imperial Chemical Industries soar 16% after Britain's biggest chemicals firm rejected an indicative 600 pence per share cash takeover bid from Dutch rival Akzo Nobel.

Jeff Bailey : 6/18/2007 10:15:21 AM

FINISH LINE TO BUY GENESCO FOR $1.5B

DJ- Finish Line agrees to pay $54.50 a share for Genesco, a 10% premium to Friday's closing price. Genesco rejected a $1.37 billion offer from Foot Locker last month.

GCO $53.63 +8.10% ...

FINL $12.25 -3.00% ...

Jeff Bailey : 6/18/2007 10:02:33 AM

10:00 Market Watch found at this Link

Jeff Bailey : 6/18/2007 9:57:05 AM

Aluminum Corp. China (ACH) $41.50 -2.37% ... session high/low has been $42.49/$40.75.

Keene Little : 6/18/2007 9:55:02 AM

If we get a continuation of a sideways/down consolidation that started Friday morning, and it goes about as long (in time) as the deeper correction on June 11-12, then we should see the correction continue into this early afternoon. If price moves down/over to the uptrend line along the lows since May 1st near SPX 1529 then the next leg up from there could be to 1558 as shown on this 30-min chart (for equality between the 1st and 5th waves in the move up from June 8th). Link

Jeff Bailey : 6/18/2007 9:52:29 AM

Bullish swing trade stopped alert ... on the remaining shares of Aluminum Corp. China (ACH) $41.13 -3.24% ... when shares traded $41.45.

Jane Fox : 6/18/2007 9:52:11 AM

AD volume to new daily highs but AD line is not what you would call overly bullish. Link

Jane Fox : 6/18/2007 9:48:09 AM

NEW YORK (MarketWatch) -- The yen fell to a new all-time low against the euro and traded near a four-and-a-half year low against the dollar Monday, after a strong rally in Asian equity markets prompted investors to build the so-called carry trades.

Jane Fox : 6/18/2007 9:46:26 AM

Gold is back testing the confluence of the 20EMA and 100EMA so may not be able to break this resistance. Link

Jane Fox : 6/18/2007 9:25:15 AM

HONG KONG (MarketWatch) -- Hong Kong's H-share index rose to a record high in Monday trading, spurred by expectations that mainland fund flows could help narrow the valuation gap with similar shares listed in Shanghai and Shenzhen.

The gains followed media reports Monday that mainland and Hong Kong officials had meet recently to discuss potential measures to redress the valuation differential between their respective exchanges, although no new measures were agreed.

Hong Kong business daily The Standard reported Monday that Hong Kong Financial Secretary Henry Tang said the two sides had been exchanging views on the topic.

Jane Fox : 6/18/2007 9:21:32 AM

NEW YORK (MarketWatch) - Treasury prices moved higher in the early going Monday, putting a bit of pressure on yields, in an extension of gains seen on Friday.

Monday's modest initial gains contrast with hectic selling last week that startled many investors and propelled the benchmark yield above the 5.25% fed funds rate, allowing it to travel as high as 5.3%, a five-year high.

Much of the recent selling spree was linked to hedging strategies as mortgage-backed securities portfolio managers sold Treasurys to compensate for souring mortgages.

The selling also was driven by worries about global inflation, signs that rates around the world are headed higher and indications that foreign central banks are shying away from Treasurys as they move to assets affording more attractive returns.

Jane Fox : 6/18/2007 9:20:07 AM

Gold and the US$ are in sync and both going the way I like to see them move.

DAX is trading above its PDH, a bullish sign for the American indexes. Link

Keene Little : 6/18/2007 9:09:30 AM

Gold (August contract), at a high of 662.90 this morning, has managed to bounce back above its 200-dma (658.10) so that's bullish. It may be heading for gap closure at 665.50 from June 7th and could even head up as high as 670 to its downtrend line from early May. A break above 670 would have me out of any short plays on gold but I'd be interested in trying a short at gap closure or the downtrend line if reached. Link

Jane Fox : 6/18/2007 9:07:18 AM

A mildly bullish session overnight. The Russell 2000 was the only market to confirm the higher low it made at 8:00. However, the fact that the markets are hovering around their respective PDHs suggest another bullish intraday session. Link

Jane Fox : 6/18/2007 8:57:13 AM

SAN FRANCISCO (MarketWatch) -- Gold's moves have been tormenting traders even more than usual lately.

For the optimists, $700 is just a stone's throw away. To the pessimists, however, it would require quite a powerful throwing arm.

The August contract for gold futures climbed past $700 nearly nine weeks ago, and, while that prompted renewed calls among some observers for $800 and beyond, gold has failed at every attempt since to return to that level.

And a week ago the price touched a three-month low under $649 an ounce.

"Right now, the time window has shifted for the price to move past the $700 barrier," said Peter Spina, an analyst at GoldSeek.com. "I would not feel comfortable betting against gold at these levels, although it does appear the rally will take a summer vacation."

Keene Little : 6/18/2007 8:06:59 AM

After the relatively strong move up in bond and equity futures overnight, bonds have held onto their gains while equities have given a little back. NQ is back to flat which is interesting since it had the most bullish looking chart (to me). What it might mean is that we're going to chop around which does fit my expectations for today and perhaps into tomorrow. It could be a whippy session, aggravated by post-opex positioning, so a little extra caution is advised.

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