A Look at Monday’s Market: The overall market finished yesterday slightly lower in a relatively broad based move. Oil was lower by $0.78 to $98.78 per barrel, and Gold was lower by $1.20 to $1,731.10 per ounce. In the grain market Wheat was lower by $0.024 to $6.446 per bushel, and Corn was lower by $0.10 to $6.316 per bushel, while Soybeans were lower bvy $0.336 to $11.852 per bushel. I follow the headlines coming out of Europe, and I am surprised the market is anywhere near these levels. It looks like the write-down on the Greek debt may be close to 70%; and it looks like Spain and Portugal’s interest rates are pushing the 20% range. Instead of getting better, I think things are getting worse in Europe.
A Look Ahead for Tuesday’s Market: Early futures are once again higher as the politicians in Europe talk about solving problems without providing any real solution. People really need to be paying attention to the substance of these stories and not just the headlines. In looking at the charts from yesterday’s trading activity, I noticed that with the exception of the high tech indices the rest of the various indices I track appear to be looking a little toppy. In other words, I think there is a chance that we could see the market pull back in the next few trading days.
The Bottom Line: The devil is in the details, so do not believe everything you hear coming out of Europe. Also, I am a little cautious concerning the market’s ability to move higher from these levels.