Brian’s Call from the Floor of the CME: Market Recap

Brian Shepard
October 12, 2012

The Vice Presidential debate was a close call, but the smugness that was displayed by the more experienced and older, sorry the more matured Vice President Biden was hard to accept. I am trying not to be political, just saying the solid points that VP Biden scored - seemed to be lost in the haze of his gestures. Moving on, premarket reports that Spain will decide on a bailout once the ECB discloses the full details on the program. Really? At this stage of the cat and mouse game - they don’t know the full details, what have they been doing? Maybe, no one knows the full details just yet - as there is no agreement. That is as worrisome as thinking about our administration working out a partisan fiscal cliff resolution. Also, JPM and WFC reported acceptable earnings, not too hot and not too cold as the premarket was trading modestly higher without conviction on either side of the market. What comes to mind is the old “devil in the details.” Similar to Thursday, the the overnight gains eroded early in the RTH’s session. Today’s surprise from the University of Michigan confidence data, which followed other equally surprising friendly economic data of late, did nothing to help the bulls - as the bears sold the news again. This week the buyers have been content to standby as the equities lack a catalyst to push’em higher as we face the headwinds from the corporate earnings. Following the retest of the highs last week, investors and traders alike appear to be happy to conserve their capital and take their profits. We have been reporting that this week’s erosion has only seen moderate volume. In other words, the equities have not capitulated on the downside which would generally signal a turning point.

Morning observations: 07:30 *DJ DATA SNAP: U.S. Producer Prices Rise 1.1% on Energy, Food *DJ US Aug PPI Unrevised. WFC slips & pulls on JPM, financials & spooz  /  Intrade 62.80/37.00....starting to see investment scenarios coming out / BTU the romney hedge starting higher low reversal / TY1 inverted head shoulders standing out....little imbalanced posted by Roger.

MrTS video: http://www.mrtopstep.com/10-12-12-rich-canlione/
MrTS Charts: "MAJOR INFLECTION STOCKS TO BONDS / SPY / TLT / SPZ 1420!" by EUBIE
http://www.mrtopstep.com/mrtopstep-charts-major-inflection-stocks-to-bonds-spy-tlt-spz-1420/

EUBIE: last FRI 1466 / this FRI 1420 / 12DAY LOWS / only -45 from here http://www.mrtopstep.com/mrtopstep-charts-a-2xtop-to-a-punch-esz-1425-whats-40-handles-2-7-in-4days-between-friends/
This week’s free webinar: Mike Vacchi – Trading the ES using Fib,Vol & Pivot Levels  - http://www.mrtopstep.com/join-mike-vacchi-for-a-free-one-hour-webinar-on-pivot-levels-and-trading-the-es-futures/