I hate it when the markets are affected on a daily basis by politics. Even the Russell 2000 can’t move higher in this news driven environment. I was looking for volatility during this northern summer period but this is ridiculous. Not a great deal more damage was done in this session than had already occurred earlier in the week but as I said before there is a limit to how many whacks a market can take before it rolls over completely. We have that risk right here – right now.
On that cheery note – my Geniuses are sitting at 82% invested. This is around where they have been for the past three weeks. That means that they have cash but not as much as I would have liked when the market is so absolutely delicately placed.
I have mentioned the JNK ETF (Junk Bonds) a few times and named it my canary - it is really worrying me this morning.
We must see Wall Street rally from here or it is in trouble.
Looking elsewhere, I noticed that coffee futures were very strong. Little wonder…..
Other than coffee, there was not much of note across commodities. Gold still hanging in around $1300 where it is hitting up against its short term downtrend.
US dollar little changed and hard to see anything of note in the crosses.
On the local scene the highlight from where I sit was WBC back below $28. I keep mentioning the possibility, or should that be probability, of the past five years being a huge top pattern – any wonder I worry about banks and the affect they have had on our market. Up until now, investors have done a pretty good job of just looking for stocks elsewhere but these banks are really starting to affect sentiment.
I thought yesterday that we might have been seeing the first green shoots in our lithium stocks but unfortunately they are still looking a bit brown this morning. Been trading opportunities in some of the beaten down little stocks but volumes have generally been pitiful.
We need to keep an eye on Shanghai as well today – very delicately balanced at the moment. I have mentioned before that there does appear to be definite evidence that “someone” is aware of how important the support below current levels is. Hope they have that bucket ready again today.
After all that I need some of that coffee - whether the price has gone up or not!
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