“A lot of people were concerned over the size of the bailout—we were expecting something closer to 150-200 billion [euros] and we only got 100 billion,” said Phillip Streible, senior commodities broker at RJO Futures. “So once traders started to digest [the news], they started to take profit or sell into that rally because they think that in another 3 to 6 months, Spain’s going to have to come back and ask for additional money.”
In addition, concerns lingered over Greece’s second round of elections on June 17, seen as a referendum on the debt-ridden nation's future in the euro zone. (Read More—Italy Well-Placed to Face Financial Turmoil: Minister) European shares closed mixed.
“If the S&P 500 travels down to the 200-day moving average near 1,288, I think those kind of corrections you have to look at buying,” suggested Streible. “What people are still forgetting is that June 19-20 is when the FOMC meeting is—a lot of people anticipating that an extension of ‘Operation Twist’ is on the table and that starts boosting U.S. confidence and we’ll start seeing the S&P rally.”
To read the full article with Phil's comments, please go to CNBC.com
Series 3 Licensed
Senior Commodities Broker
Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains, and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker.
As a senior commodities broker .... Read More