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The much anticipated GM IPO launched today and served as one of the catalysts for a market searching to stem recent losses. A lower dollar helped as the greenback shed 0.5%. And while the market enjoyed impressive gains overall, the S&P stopped short of closing above the psychological 1200 mark.
Also contributing to the bullish action was the latest Philly Fed Index, which jumped to 22.5 for November from the previous 1.0 this past month.
Initial jobless claims remained
Updated 11-19-2010 at 07:20 PM by coolhand
The market began the trading day looking to bounce back from its recent weakness, but never really got in gear in what was a listless day of activity that kept to a tight range.
There was little in the way of leadership in the broader market and ecomomic data was of little interest to traders. Early this morning the October Consumer Price Index posted an increase of 0.2%, which was a bit lower than estimates, while Core prices remained flat.
Housing starts for October
Well, the market has numerous negatives to focus on at the moment and today's losses were contributed to a number of factors. First there's Ireland and Greece debt problems, second was a concern that China may be close to issuing a rate hike. Third was talk that Austria would withhold bailout funds for Greece. On top of those headlines and fears is the dollar's continued rise (it tacked on another 0.9% today).
Treasuries managed to bounce however, as the 10-year Note gained a full
Given last week's sell-off I can't say that I'm surprised that the market "tried" to stage a comeback today. But by the close the major averages ended the day mixed.
Bonds took another shellacking however, and that is becoming a troubling sign. Exactly what that means I can only speculate, but I suspect inflation may be the fear. And that's not a friend to bonds or stocks. It's entirely too early to say though, and we won't know the truth of it until it's somewhat in our rearview
We're on another sell this week based on our weekly sentiment survey. It was a great call last week and now the Seven Sentinels have issued a sell based on last Friday's close. It is OPEX week so I would not be surprised with some volatile action.
Let's take a look at how the tracker charts are allocated for this week:
The Top 50 are showing little fear in the face of deteriorating technicals as they