RebelTraders

How about that strong selling at the moment the market opened. Another case of selling the news. Large positions handing off to those buying at the open thinking that the market was going to rally.

But, it is becoming increasingly evident that the large funds and other large money participants are letting the market get bid up by the small money. And then once good (or at least good in the eyes of the media) news comes out the market sells on the increased volume.

A pattern, that if continues, will surely be the fall of the market for there will be less and less large money holding positions as they keep selling off as the volume steps in.

As I wrote this morning… I found it hard to believe the market would get excited over the retail sales data this morning. But, in the pre market someone did get excited and bid up the futures and stocks. Well, they got their dangling parts cut when the selling over powered their buying and they were taking losses the moment they were buying.

One other bit of economic data this morning was business inventories:

MARCH BUSINESS INVENTORIES: 0.1% V 0.4%E- prior revised from 0.6% to 0.5%Weak inventory data reveals the true feelings of retaillers, for they are keeping their inventory levels of products down by not purchasing as many goods. Weak inventory data equates to expected weak sales. US SENATE VOTES TO SUSPEND DELIVERIES TO SPR UNTIL OIL DROPS BELOW $75/BBL, PASSES BY VETO-PROOF MARGIN- US House is supposed to vote on similiar measure later today.

So, the US government will stop filling the emergency oil tanks until such time as when oil goes down to $75 per barrel. That may mean that the oil reserves never again get topped off. $75 per barrel oil is very generous on part of the Senate, don’t you think? Oil remains on a multi year bull trend… a drop to $75? I don’t see it happeneing. So what will no longer filling the emergency oil tanks do for us? Probably not much of anything except maybe a short lived boost in confidence that more oil will be available. But I just don’t see it having any substantial impact at all.

This entry was posted on Tuesday, May 13th, 2008 at 12:35 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.