Archive for January, 2012
The Printing Presses Are Running. This Was the Final Push. Watch For Signs of Selling
The price action this week has been rather subdued. Most Asian markets have been closed to celebrate the New Year and the economic releases have been minor. Traders are focusing on earnings and the results are in line. Yesterday, the Fed provided a spark when they set a zero rate policy through 2014. The printing presses in Europe and the US are running at full speed. Stocks had a mixed reaction initially, but they eventually rallied on the news. The Dow is close to a 3 1/2 year high. Conditions feel like they are improving, but the Fed obviously has concerns. …
The Momentum Has Stalled - FOMC Should Provide an Afternoon Spark.
The overnight news has been fairly light. Traders are focused on earnings and the results are mixed. President Obama’s State of the Union Address had a few interesting items, but there weren’t too many surprises. The market started off on a negative note when selling in Europe spilled over to our market. Earnings from Siemens yesterday and Ericsson today pressured stocks. Greece has still not come to terms with private investors. The coupon payment seems to be the sticking point. Analysts believe the haircut will come in around 65%. The President bashed financial institutions and we can expect new regulations. He …
State of the Union - Apple - FOMC - All Should Be Bullish. One More Push Higher.
The market has started the year off on a positive note. It has not had a down day is January 13th and there have only been two down days all year. Yesterday, stocks looked tired and the trading range was very narrow. Overnight, the flash PMI for Europe came in at 50.4 and that was much better than expected. It is back above the expansion level. The news is good, but I would not get too excited about one data point. Months of economic releases point to a recession in Europe. Greece has still not reached an agreement with private investors. …
CBOE to Launch Trading in CBOE Emerging Markets ETF Volatility Index Options on January 31
CBOE to Launch Trading in CBOE Emerging Markets ETF Volatility Index Options on January 31
Rally In Final Stages. Watch For Late Day Selling and Negative “Beat” Reactions
Last week, the market broke through major resistance and we saw follow-through buying. Stocks have rallied 10 consecutive quarters during the early part of earning season. Many of the strongest companies post results early in the cycle and optimism builds quickly. This morning, the price action is very lackluster. China’s market will be closed this week as they celebrate the New Year. Many analysts anticipated a reduction in bank reserve requirements ahead of the holiday and it did not happen. Economic conditions have stabilized, but they are tenuous. Home prices in China have declined to straight months and their growth is …