Interesting analysis of low trading volume and how it affects investor return.
Comments »Market Update
Markets chop around in true waiting mode fashion. Markets are waiting for September 6th when the ECB will release bond buying details.
Oil has reversed upside gains while equities have pared losses as Europe closes on a positive note.
Gold and other metals are flat also awaiting on info from Jackson Hole.
[youtube://http://www.youtube.com/watch?v=_bwHK1xkgJA 450 300] Comments »Asia Trades a Little Lower, Europe Rallies, U.S. Futures Reach for Higher Ground
Wall Street Week Ahead: S&P to Fly after Wild Ride to Wyoming
(Reuters) – The streak is over, but is the trend intact?
A six-week string of gains in the S&P 500 .SPX ended on Friday amid shifting expectations for central bank stimulus. This week could bring clarity on that issue, and that could determine whether the recent rally that took the index to four-year highs will persist.
Read the rest here.
Comments »Orders for Capital Goods Decrease by Most Since November
“Demand for U.S. capital goods such as machinery and communications gear dropped in July by the most in eight months, indicating companies are pulling back on investment.
Bookings for non-military capital equipment excluding planes slumped 3.4 percent, a Commerce Department report showed in Washington. Total orders for goods meant to last at least three years jumped 4.2 percent, paced by a 54 percent surge in demand for civilian aircraft.
Possible U.S. tax increases and spending cuts and a global economic slowdown are hurting companies such as Caterpillar Inc. and Deere & Co., indicating manufacturing will no longer be a driver of the expansion. Federal Reserve policy makers have signaled that are prepared to take further steps to sustain the expansion if growth doesn’t pick up.
“Companies just want to be prepared for the worst-case scenario,” Omair Sharif, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut, said before the report. “They want to enter the post-election and post-fiscal cliff period with lean inventories. That’s going to be a drag on manufacturing.”
Comments »Durable Goods: Prior 1.3%, Market Expects 2.5%, Actual 4.2%
European stocks Fall on Comments About Greece by Merkel
“European (SXXP) stocks declined, with the Stoxx Europe 600 Index heading for its first weekly fall since the beginning of June, as German Chancellor Angela Merkel said Greece must stick to its commitments to stay in the euro area.”
Comments »Asian Markets Fall on China Growth Concerns
“Asian stocks fell, with the region’s benchmark index retreating from the highest level since May, on signs of slower growth in the U.S. and China and amid concern Europe’s leaders aren’t making progress on the debt crisis.”
Comments »Global Markets Trade Lower While U.S. Futures are Off a Bit
The Five-Year Pattern For The CBOE Volatility Index (VIX)
VIX five-year pattern suggests a complacent equity market
See the chart and read more analysis here.
Comments »FLASH: Italian and Spanish Sovereign Debt Yields Are Back on the Rise
FLASH: European Markets Are Getting Hammered Again
Initial Claims: Prior 366k, Market Expects 365k, Actual 372k
Continuing claims at 3.31 million
Comments »Global Markets and U.S. Futures Chop Around the Flat Line
Market Update
After hitting four year highs yesterday the markets continue a minor digestion period trading in choppy fashion today.
The world waits on Europe. Gold and oil lead to the upside while industrials, consumer non cyclicals, energy, and transportation lead to the minor downside action.
Europe closes on the lows with the euro essentially flat.
[youtube://http://www.youtube.com/watch?v=S8pDpdGVKpU 450 300] [youtube://http://www.youtube.com/watch?v=X_PDns23RWY 450 300] Comments »Global Markets and U.S. Futures Give Back a Little, Europe Off by 1% or More
European Markets Are Comfortably Lower
Market Update
The markets carved out new four year highs this morning only to drift back into unch territory.
Expectations of the ECB capping sovereign debt yields by debasing the euro is high.
European markets closed up 0.75% on average and the euro is giving the homo hammer to short sellers. A crucial break above 1.24 is positive indeud.
Fun times in a world dominated by central banks.
I smell 1446 S&P over the next week or two.
[youtube://http://www.youtube.com/watch?v=C8ZbUKKDfnU&feature=related 450 300] Comments »Asian Markets Pare Gains on worries That China Will Not Ease Monetary Policy
“Most Asian stocks fell as concern that China won’t ease monetary policy even amid slowing economic growth and lower earnings offset optimism for the global outlook after U.S. consumer confidence improved.”
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