The S&P tested 1060 twice yesterday, almost three times, and held. We’ll see where we go today, but a further dollar rally should help crack that level like an egg. Visa beat their number last night mainly because of “debit” purchases, not credit card purchases,yes folks are still playing close to the vest. Consumer confidence fell short and although the dollar was up, it didn’t rip, probably still to early to blow the bull trumpet there, although it does demand close attention.
Steel stocks are broken and look like toast, coal is hanging around and gold is in a range, apparently waiting waiting for the greenback’s next move. Bill Gross thinks the rally in risk assets has run its course and Grantham is looking for a 15% correction. We’ll see who is right in all this, but much of the outcome will depend on the direction of the dollar.
If your looking for a “tell” in this market going forward, I suggest following the action on ( IYT), the transportation sector, it broke support yesterday and closed below its 50 day moving average. It looks like a double top was put in, and the sector is usually a very reliable indicator of things to come for the market.
Have a great day.
Wednesday, October 28, 2009
Economic
8:30am Sept Durable Goods Orders (last -2.4%, ex-transport 0.0%)
10:00am Sept New Home Sales (last 429K, m/m 0.7%)
10:30am DoE Crude Oil/Gasoline/Distillate Inventories
1:00pm Treasury’s 5-yr note auction
4:00pm Reserve Bank of New Zealand interest rate decision
Events
8:00am FDA Anesthesiology and Respiratory Therapy Advisory Committee Meeting. Biotech Investor Forum. MBA Mortgage Applications (7:00, last -13.7%). Trades Ex-dividend: CAG $0.20.
Earnings
Before the Open: AEIS, AMG, ARLP, ARBA, ARW, ASH, ASPM, AUXL, AVA, BDC, BOKF, BWA, CNP, CEVA, CSR, CCE, CVLT, COP, DEP, EPD, EEFT, EVR, GD, GT, HGRD, HES, IPG, IP, JNY, KDN, ID, LAZ, LCRY, LVLT, MKTX, MWV, NWL, NXY, NYB, OC, PEI, PAS, POZN, PX, PEG, Q, RES, RTIX, SAP, SVVS, SEE, SLAB, SPIL, SO, SPNC, SPW, TECH, MDCO, TRCR, TZOO, UNF, UMC, VPHM, WBC, WLP, WXS, WYN. After the Close: ACXM, AEA, AATI, AFL, AEM, AKAM, AIQ, ASIA, AIZ, AVB, BAS, BMRN, BMR, BLKB, BDN, CBT, CDNS, CWT, CATM, CBG, CDR, CLDN, CPHD, CERN, CHDN, CIR, CYH, CML, CITP, XRAY, DRE, DNB, EGP, EFII, EQR, RE, ESRX, FALC, DAVE, FSLR, FLS, FMC, FORM, GNK, GVA, GSIC, HBI, HGIC, HLIT, HLX, HIW, HMN, INSP, IDCC, IFSIA, ICO, INET, ITRI, XXIA, JAH, KALU, KEG, KEX, LHCG, LNC, LOGM, LOOP, LSI, MANT, MTZ, MDAS, MOH, NEWP, OII, ODSY, ORCC, ORLY, OI, PDLI, PLXS, PSSI, STR, O, RYL, SIGI, SHOR, SFLY, SWIR, SFN, SPN, SYMC, SMMX, TLEO, TTEC, TER, TWPG, TLGD, TMK, CLUB, TRN, TYL, URI, UAM, WCAA, WLL, XL.
The S&P tested 1060 twice yesterday, almost three times, and held. We’ll see where we go today, but a further dollar rally should help crack that level like an egg. Visa beat their number last night mainly because of “debit” purchases, not credit card purchases,yes folks are still playing close to the vest. Consumer confidence fell short and although the dollar was up, it didn’t rip, probably still to early to blow the bull trumpet there, although it does demand close attention.