By Gareth Soloway on May 10th, 2010 1:00pm Eastern Time
While the markets have surged today on the back of a European backstop worth almost one-trillion dollars, the markets are snoozing intra day. The SPDR S&P 500 ETF (NYSE:SPY) gapped higher today into the 10 minute 200 moving average, up 4%. Since that point, the markets have inched higher and lower in a tight range as if sleeping on a cloud. In the coming days, it is possible to see a little more upside, possibly to $117.50 on the SPY. After this 200ma, that will be the next major level.
Oil surged higher today on the back of a recalculation of demand from Europe after the loan package was put forth. In addition, the Euro surged while the dollar dropped. That also helps jump start oil to the upside. United States Oil Fund LP (ETF) (NYSE:USO) filled a major gap last Thursday and Friday and is now jumping 1.57% on the day.
Gold on the other hand is dropping nicely. Gold is losing ground because of the fear trade subsiding. With a European collapse in the short run off the table, traders that ran into gold for safety are now selling it, opting for higher risk assets. The SPDR Gold Trust (ETF) (NYSE:GLD) is down 0.83% on the day.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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