Potential for Progress

On June 29, 2012 by TradingDesk

Euphoria reigns across financial markets this morning, surprised by news of the actual potential for progress in Europe. While the details of the plan are sketchy at best at the moment, and legal hurdles remain to be cleared, the bottom line is concessions have been made that should allow for an easier bailout of the troubled banking sector. The Euro has wiped out 2 weeks of losses in a few hours on the news, global stock markets are up 2% or more in most countries, and crude oil prices are up 4.5%.

While this morning’s move has been dramatic, so far it has simply brought energy prices back into the middle of their June trading ranges, so it’s too early to say that a new bull market is underway. If products can clear $2.70, and hold there, then we’ll be looking for a substantial move higher throughout the second half of the year.

CLICK HERE for a PDF of today’s chart

Comments are closed.