Wednesday, July 27, 2011

Market Update

Monday,July 25th bulls were able to discount the disappointment that facilitated the large down gap Sunday evening in equity futures.

Overnight, the ES traded just inside of yesterday’s day session high and low. As we draw closer to the meat of the major news releases this week, we would expect activity to pick up.

Besides the debt ceiling issue, there is Durable Goods and the Fed’s Beige Book released tomorrow, which the Fed produces in preparation for the upcoming FOMC meeting on August 9. The first estimate of Q1 GDP is released Friday, which also commences the Fed’s annual Jackson Hole event.

Many Fed governors will be speaking, and it is not lost on traders that last year’s meeting leaked hints of the resumption of Fed balance sheet maintenance and (subsequent) expansion (QE2). Accordingly, risk markets appear poised to run with any good news, provided they can avoid a rout on any disappointment. Until the ES accepts above 1350 or below 1290, it simply remains in a trading range.

The broad market declined today. The strongest decline was noted on the Russell 2000 (0.80% loss) while NASDAQ 100 gained 0.22%. Of the last 13 sessions, the DJI has closed red 9 times. On the NASDAQ 100, we saw the 6th up-close in the last 10 sessions. The DJI is now at new one-week low.

2,705 million shares traded on the S&P 500 today. This is close to the average volume we saw on a daily basis during the past 3 months.

In previous short-term outlook, I had suggested: "Negative money flow on 5-day chart would suggest the possibility of negative trading tomorrow after the market open. 15-day charts ... 30-day charts ... would favor bears as well." - Today, the major indexes declined.
 5 minutes chart are showing declining oscillator readings at session's end. Negative money flow on this chart would suggest the possibility of negative trading tomorrow after the market open. 15 min charts  are showing negative money flow as well, thus confirming 5-day chart's outlook. However, 30 minutes are showing advancing and flat  reading at this moment. Taking into account the most recent bearish readings I would say that despite negative outlook on 5- and 15 charts, overall sentiment is slightly in favor of bulls (unless we see declining  on 30-min charts).
The United States will lose its top-notch AAA credit rating from at least one major rating agency, according to a Reuters poll that also found wrangling over the debt ceiling has already damaged the economy.

A contraction in motor vehicle production because of a shortage of parts from Japan and high gasoline prices that curbed consumer spending, probably kept the U.S. economy on a slow growth path in the second quarter.

Financial markets have remained unruffled despite a stalemate over raising the debt ceiling because investors and traders expect Congress to act to prevent a debt default, a top Federal Reserve official told lawmakers on Tuesday.

Prices for new single family homes rose to a five-month high in June even as sales slipped, but recovery for the broader housing market continues to be frustrated by an oversupply of properties.

A downgrade of the United States' AAA credit rating is a bigger risk than a default and could over time add up to 0.7 percentage point to bond yields, members of a U.S. securities industry group said on Tuesday.

President Barack Obama's Democrats and their Republican rivals were further apart than ever on Tuesday in an impasse over the government's debt limit as investors braced for a looming default and downgrade. Remember that Republicans don't want Obama re-elected and now they are using dirty politics again. Many people that never voted for the President are coming out like vultures critizising him without mention of past administrations mistakes in not lowering the national debt.

If Republicans give a victory to the President it will damage their chance to get re-elected or for a Republican to be President .Real dirty politics !

US Republican Boehner says we won't hike taxes because taxes destroy job creation - lying to the people for the benefit of the wealthy !

The Republicans are decieving this nation and are trying very hard to satisfy their wealthy constituents in return for re-election, that is that is a true undisputable fact.Record profits and sitting with their wealth in overseas banks, waiting for the next expantion overseas with cheaper labor.Don't keep lying to the American people !

Will bet my whole year income that if Taxes are cut , it will NOT create more jobs due to the arrogance, greedy practices, and continue exporting of jobs by multinationals companies !  

No comments:

Post a Comment