Tuesday, February 21, 2012

Greece Deal Reached - Sell The News?

Index futures opened with a big gap after the weekend. The market was probably anticipating good news about the Greece deal. But they had to wait another day to get confirmation. That came this morning and while commodities mostly held on to their gains, indices started pulling back. Half an hour into the session, the market turned back up towards new highs. However, it didn't take long before we turned once more, now to make new lows for most indices. Oil spiking higher didn't help much.

We're closing near Friday's close and indices are staying mostly in their respective ranges. Only small caps were very weak today and are some cause for concern.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals & oil jumped higher. They outperformed indices by a width margin. Oil spiked higher after lunch, up a point (>1%) in half an hour and gaining about 2.5% since Friday's close.
The euro on the other hand shot up on the Greece-news, but gave back most of the gains and started bouncing up and down near Friday's close.

Articles for tonight:
Earnings Season Update - Still Not Good
Keys to Being a Successful Trader: Success Requires Attention to Detail
Cure for revenge trading

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