Market Recap 062911

Market Recap: Another super-strong risk "ON" day with equities closing above 130 and hitting an intraday 131 high. The dollar continued to show extreme weakness remaining in the downtrend it started on Monday. It managed to hang on to 75 but even in after-hours its not looking good. Copper broke out it's consolidation range and gave risk a nice tail thrust. The growing appetite for risk was reflected in UST's continued to sell-off. Markets could care less about the riots in Greece or Obama's less than optimistic progress on the debt ceiling press conference.

For a change we saw financials lead the sectors after some BAC overnight and credit card (MA, V, AXP) news late in the session. We also saw the re-emergence of materials and energy as sector leaders which is what you want to see if you're bullish. The relative leadership out of small caps confirms investors continuing appetite for risk. Out of the 3 indexes its already at it's 50 SMA.

Where do we go from here?

Well I would think after 3 straight strong days we would need to digest and consolidate sideways but there's an underlying window-dressing bid in this market as well as no dollar buyers. We closed near the highs so investors aren't feeling very insecure holding overnight. I believe we have Chinese PMI tonight or tomorrow night so we shall see what that brings.

Chinese PMI on 06/30/11: http://www.businessinsider.com/why-things-may-be-about-to-get-brutal-for-dr-copper-2011-6

 US econ calendar: http://finviz.com/calendar.ashx

SPY

30 minute

QQQ

30 minute

IWM

30 minute

Dollar (USDX)

Copper (HG_F)

Long Bond (ZB_F)

Crude (XOIL)

VIX

ATR (SPY)

McClellan Oscillator

JNK v. LQD