18 September 2012
Market Summary
I was almost right on the market call yesterday. It was almost totally flat. the first half of the trading day was spent in the negative region. The TRIN was at in the bearish region for the entire trading sessions. However, the VIX fell by 2.81% yesterday. As mentioned in the last DMA, the bulls and bears are going to have a fierce fight yesterday and it seems that the bulls won the day.
There will be quite a bit of housing data coming out today. I believe the market is pricing into the data today.
Yesterday conrad and the few trainers had an very interesting discussion. It's about whether market will crash in september... September is famous for market crashes. Con said it might happen. But... I highly doubt so... If it's going to happen... it's gonna happen after the presidential election after Nov 6.
Market Internals
Volumes were relatively weak yesterday. Most people are staying on the sidelines again, awaiting some positive catalyst to break into the higher highs. Possibly, the market is waiting for Draghi's speech again on Thursday. It was really a flat day. The UVOL and DVOL were almost the same! Same goes for the ADVN and DECN.
Leaders and laggards
It's flat...
Technical Updates
All 3 indices is falling into a stalled pattern already. Perhaps the market is not convinced that QE3 will be beneficial for the economy??
Commentaries
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| Stock Market Update |
16:10 ET Dow +11.54 at 13569.82, Nasdaq -0.87 at 3177.8, S&P -1.87 at 1459.32 :[BRIEFING.COM] Today's session was mostly uneventful as equities remained near their opening levels throughout the day. The major averages showed some divergence as the S&P 500 shed 0.2% while the Dow added 0.1%.
Stocks within the consumer staples sector were the top performer of the day. Within the group, Energizer (ENR 75.22, +7.30) surged 10.7% after announcing preliminary results of a comprehensive review of the company's cost structure. As a result of the review, Energizer expects annualized cost savings of $175-200 million. Beverage and cigarette stocks were also on the rise within the defensive sector. Coca-Cola (KO 38.62, +0.27) and British American Tobacco (BTI 104.81, +2.70) ended higher by 0.9% and 2.6%, respectively.
The Dow Jones Transportation Average slipped 1.1% as it trailed the broader market. Disappointing guidance from FedEx (FDX 86.55, -2.73) spilled over to other group components as all twenty names within the transportation average traded lower. Airlines showed the biggest weakness as Delta (DAL 8.96, -0.27) and United Continental (UAL 19.27, -0.46) both fell near 2.5%. Shipping stocks were also pressured with Matson (MATX 21.84, -0.43) and Overseas Shipholding Group (OSG 6.76, -0.09) ending lower by 1.9% and 1.5%, respectively.
Technology stocks have traded mostly in-line with the broader market. AMD (AMD 3.62, -0.39) slumped 9.7% after Senior Vice President and Chief Financial Officer, Thomas Seifert announced his resignation. The company announced that Devinder Kumar will serve as interim Chief Financial Officer while a search for a replacement takes place.
Meanwhile, OCZ (OCZ 4.13, -0.33) slid 7.4% after Chief Executive Officer, Ryan Peterson resigned. The board of directors has appointed Amex Mei as interim Chief Executive Officer. The change at the top resulted in several analysts moving their ratings. Craig Hallum upgraded the stock from ‘hold' to ‘buy' while Stifel Nicolaus downgraded OCZ from ‘buy' to ‘hold.'
Elsewhere, F5 Networks (FFIV 108.62, +4.16) jumped 4.0% after Piper Jaffray commented on the company's attractive valuation, and said that the network provider is likely to beat earnings estimates. Other networking names finished lower withCisco Systems (CSCO 19.04, -0.11) and Juniper Networks (JNPR 18.94, -0.43) slipping 0.6% and 2.2%, respectively.
For-profit education stocks were broadly higher today. Career Education (CECO 4.09, +0.27) and Corinthian Colleges (COCO 2.84, +0.14) added 7.1% and 5.2%, respectively. The advances did not appear to be news-driven as other education listings also made notable advances. Strayer Education (STRA 70.82, +2.85) andBridgeport Education (BPI 11.64, +0.42) both gained near 4.0%.
The current account deficit for the second quarter totaled $117.4 billion, which was lower than the $126.8 billion deficit that had been broadly anticipated.
The July net long-term TIC flows print indicated a $67 billion inflow of foreign capital into U.S. denominated assets.
Lastly, the NAHB Housing Market Index for September registered a reading of 40, which was ahead of prior month's 37, and better than the reading of 38 that had been expected among economists polled by Briefing.com.
In tomorrow's economic data, the weekly MBA Mortgage Index will be reported at 7:00 ET, while housing starts and building permits will be released at 8:30 ET. Lastly, existing home sales will be announced at 10:00 ET. ..NYSE Adv/Dec 1335/1681. ..NASDAQ Adv/Dec 1203/1260.
After Hours
16:50 ET No notable movers this afternoon on earnings/guidance :
Today's session was mostly uneventful as equities remained near their opening levels throughout the day. The major averages showed some divergence as the S&P 500 shed 0.2% while the Dow added 0.1%.
Today after the close no notable companies reported earnings.
Futures are mixed after hours: S&P 500 futures are +0.69 from fair value of 1452.51 and Nasdaq100 futures are -0.55 from fair value of 2850.55.
Tomorrow morning before the open two economic reports are scheduled to be released: 1) MBA Mortgage Index, and 2) Housing Starts (Consensus 770k) and Building Permits (Consensus 800k).
Tomorrow before the open the following companies are scheduled to report earnings: ASNA, AZO, CBRL, GIS
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Commodities
Coffee made some gain back from yesterday's fall of 3%.
Treasuries
It seems that there are some sell off in the bonds again. I believe the money is moving into the risk market again. I believe there's still some upside for the market to go. I'm still bull in a bearish economy.
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