Pre market view - June 29th

Trying to find something to gauge the market this morning and so far there is nothing notable to to get a clear picture of where we are going today. With the news this morning of a car bomb discovered in London I looked at the FTSE index and find that it is down currently. I don't see any evidence that the London markets are being impacted by the news of the car bomb in their Country but instead it looks like it is down over concerns over our FOMC statement from yesterday.

The only stocks doing good this morning in London are energy related stocks. Oil producers and services are up while the financial sector in London is taking a hit. If we are to get a feel for how our markets will do today then I would expect to see some volatility in the financial sectors here today. And the oil and energy sector may have some buying today.

The Asian markets were up a little and Toyota was a big winner there.

Futures are down, gold is up a little bit, and crude is up a little and is over $70 (70 seems to have become a psychological number, people hear 'over 70' and it has an impact on people. So whenever we see crude go above 70 the impact starts to increase).

Yesterday after the market closed Research in Motion (RIMM) released their earnings and it was good. RIMM is trading up in pre market. This may have an impact on Apple (AAPL) today. With Apple already having a good run over the past couple months and today being the big iPhone day there is likely going to be some profit taking on Apple now. Remember that in trading the pros will use liquidity (volume) to get out at a decent price. Think of it this way, if you owned 50,000 shares of Apple and you wanted to finally take your profits you will wait for some big news event on the stock to sell in to. You take advantage of others buying so you can sell yours without it having a big impact on the price. Selling while others are buying is how large shareholders take their profits and slip away without it being noticed too much. With the iPhone being the big news all over the media it will probably bring "new money" into the stock as the retail investor will now want to get into the action. So they start buying and the big money will take advantage of that and get out. So we will see some added volatility in Apple today.

As I said last night I believe we will have another pullback in the major indices again soon but my long term view is still bullish at this time. We are still in a trading range in the indices so until we see the the break above this range we are still in a "yellow flag" condition.