World Bank Expects 3% Contraction, Dollar Rallies, Oil Falls

June 22nd, 2009

Great weekend but it’s back to the charts. I actually attended my very first (and probably the only one in my lifetime) 100th birthday party this weekend in NJ for my great aunt. It was amazing to spend time with her and talk about how much things have changed in the last 100 years. You can only imagine the wonderful words of wisdom she gave me about life!

 

I also went out to dinner and drinks with some old friends from Wall Street. Many of them still are working for the big banks – the one’s that are left of course – and doing very well. But I found it very interesting how many of them said that there has been really NO ACTIVITY over the last 2-3 months. This is not good. If companies aren’t trying to raise capital and actively seek new investment opportunities then it really means they are more concerned about staying ALIVE than anything else. Again, this is not a bright spot right now.

 

Now, onto the start of the trading week. Pre-market futures were down pretty good this morning – about 15 points on th S&P – following some comments from the World Bank. Basically they are expecting about a 2.9% correction which sent the Dollar higher while Oil prices fell. Naturally member and I are still short Oil so it’s going to be another great day. As I mentioned in the trading video over the weekend, the bears have a lot of muck and sludge to get through before reaching 880 anytime soon. Of course I’ve very confident that it’s got to make it down there before we get a meaningful rally higher. Here is what we should be watching out for today. 905 will be the first level or support then 895 after that.

 

spx19

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