[MM_Member_Data name=’firstName’],

U.S. markets ended mostly lower on Monday with the Dow the lone exception. The index traded higher for the 5th-straight session while setting another all-time high.

The Nasdaq and S&P 500 traded lower for the 3rd-straight session while the Russell 2000 is now on a four-session slide. Despite the end of July weakness, the major indexes posted their best month since February.

Global Economy –European markets closed mostly lower as the FTSE 100 index gained 0.1% while the Stoxx Europe 600 fell 0.1%. France’s CAC 40 index declined 0.7% and Germany’s DAX 30 shed 0.4%.

U.K Mortgage approvals fell in June to 64,684 from 65,109 a month earlier. This was the lowest number of new approvals since September last year.

The European Union’s statistics agency said the proportion of workers without jobs across the 19 countries that use the euro fell to 9.1% in June from 9.2% in May, reaching its lowest level since February 2009.

Asian markets caught a bid as Hong Kong’s Hang Seng Index jumped 1.3% and Australia’s S&P/ASX 200 gained 0.3%. South Korea’s Kospi index added 0.1%. China’s Shanghai index advanced 0.6% while Japan’s Nikkei Stock Average slipped 0.2%.

China’s services trade deficit rose to a record $29.5 billion in June from $22.5 billion in the previous month.

U.S. Economy-July Chicago PMI Business Barometer Index checked in at 58.9 versus consensus of 61.0.
June Pending Home Sales Index was up 1.5% compared to expectations of 0.9% for the month.

July Dallas Fed Mfg Survey General Activity Index came in at 16.8 versus forecasts of 13.8.

Market Sentiment –Fed’s Stan Fischer spoke from Rio de Janeiro on “The Low Level of Global Real Interest Rates” today.

He warned that low capital spending could be affected by political and economic uncertainty, while monetary policy can push the equilibrium interest rate higher by boosting confidence in the growth outlook.

The iShares 20+ Year Treasury Bond ETF (TLT) traded down to $123.40 on the open with support at $123-$122.50 and the 100-day moving average easily holding. The rebound $124.05 cleared positive territory and lower resistance at $124-$124.50.


Market Analysis-The Spiders Dow Jones Industrial Average ETF (DIA) continues to make a push towards $219-$220 after setting an all-time high of $219.03.

The index is trying to form a new base above the $218 level with support at $217-$216. A move below the latter would likely signal a short-term market peak in the blue-chips.


Copper pulled back slightly following a strong breakout over the past couple of weeks. The run to resistance at $2.90-$3 has temporarily stalled with today’s high reaching $2.884.

Rising support is at $2.85-$2.825. Copper use to be a leading commodity indicator of equity returns but this is no longer the case. However if we return to a true capital-expenditure driven economy like we had in 2005-2008, copper could continue to rise.



All the best,
Roger Scott