Monday, October 10, 2011
NEW YORK (AP) -- Stocks futures are rising after the leaders of France and
Germany vowed to strengthen Europe's banks to help them weather the region's
debt crisis.
German Chancellor Angela Merkel and French President Nicolas Sarkozy on Sunday said a "comprehensive response" to the debt crisis would be finalized by the end of the month, including a plan to ensure banks have adequate capital.
That reassured investors, even though the leaders provided few specifics on how the plan would work.
Ahead of the opening bell, Dow Jones industrial average futures are up 125 points, or 1.1 percent, at 11,191. Standard & Poor's 500 futures are up 14, or 1.2 percent, at 1,169. Nasdaq 100 futures are up 29, or 1.3 percent, at 2,230.
The bond market is closed for the Columbus Day holiday.
German Chancellor Angela Merkel and French President Nicolas Sarkozy on Sunday said a "comprehensive response" to the debt crisis would be finalized by the end of the month, including a plan to ensure banks have adequate capital.
That reassured investors, even though the leaders provided few specifics on how the plan would work.
Ahead of the opening bell, Dow Jones industrial average futures are up 125 points, or 1.1 percent, at 11,191. Standard & Poor's 500 futures are up 14, or 1.2 percent, at 1,169. Nasdaq 100 futures are up 29, or 1.3 percent, at 2,230.
The bond market is closed for the Columbus Day holiday.
NEW YORK (CNNMoney) -- U.S. stocks were poised to open sharply higher Monday, as investors welcomed a pledge from European leaders to unveil a plan to solve the European debt crisis by the end of the month.
Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up more than 1% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up more than 1% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
NEW YORK (MarketWatch) — U.S. stock market futures rose Monday
as France and Germany pledged to do everything necessary to support Europe’s
banks, while investors also looked ahead to the start of third-quarter earnings
season.
Futures on the Dow Jones Industrial Average /quotes/zigman/2976950 DJ1Z +1.14% gained 137 points to 11,203 and those on the Standard & Poor’s 500 index SP1Z +1.29% rose 15.60 points to 1,170.50.
Nasdaq 100 futures ND1Z +1.41% were up 29.50 points at 2,231.25.
Technicians turn bullish
By Barry Ritholtz - October 10th, 2011, 7:30AM
By Barry Ritholtz - October 10th, 2011, 7:30AM
I mentioned last week that I believed we were due for a rally lasting 4-7 days, and a move 5-7% higher.
The WSJ Ahead of the Tape column discusses some of the reasons many Technicians are starting to turn Bullish — whether its for a trade or something longer lasting. Last Tuesday was an “Outside reversal” day, something pointed out by several traders in the article.
I do not blithely dismiss technicals the way many value or fundamental managers do. But I do want to see statistical evidence that there is some validity there. Recall that our prior look at technical signals like the Death Cross and the Hindenberg Omen pointed out they were less reliable than a random coin toss. Some explanation as to causation helps, so we know we are not confusing mere correlation as well.
Which brings us to an Outside Reversal day. I understand the thinking behind the Japanese Candlestick charts, but I have been unable to find any data that shows the reliability of this day historically.
But to me, the real key is going to be the next few quarters of earnings. If we see a move off of the recent peak as the economy softens, it suggests stocks are priced dearly. If earning can maintain their strength, then stocks are cheap here.
>
The WSJ Ahead of the Tape column discusses some of the reasons many Technicians are starting to turn Bullish — whether its for a trade or something longer lasting. Last Tuesday was an “Outside reversal” day, something pointed out by several traders in the article.
I do not blithely dismiss technicals the way many value or fundamental managers do. But I do want to see statistical evidence that there is some validity there. Recall that our prior look at technical signals like the Death Cross and the Hindenberg Omen pointed out they were less reliable than a random coin toss. Some explanation as to causation helps, so we know we are not confusing mere correlation as well.
Which brings us to an Outside Reversal day. I understand the thinking behind the Japanese Candlestick charts, but I have been unable to find any data that shows the reliability of this day historically.
The technical data points that support a rally here include:The bailouts in Europe, the German pledge to protect European banks, the Merkel and Sarkozy pledge for bank recapitalization, are just as likely a cause of today’s lift as the technicals.
• Divergences between NYSE New 52 Week Lows and Market lows — NYSE is making less New lows while the S&P isn’t, a positive divergence.
• % of NYSE Stocks above their 200-Day Moving Averages — about 15%, up from 7%. When in this range, stocks tend to eventually rally. Note they slipped from 15% over a few months to 1% in March 2009 — so its hardly a precise timing tool.
• VIX: The spike last week to 45 suggests excessive fear (Caveats abound for this indicator also, whixh hit 48 on August 8)
• 90/10 days — several downside 90/10 days in volume and breadth help washout sellers, albeit somewhat temporarily these days. At the very least, the 90/10 days imply a short term rally.
But to me, the real key is going to be the next few quarters of earnings. If we see a move off of the recent peak as the economy softens, it suggests stocks are priced dearly. If earning can maintain their strength, then stocks are cheap here.
>
The market (YM Futures) is gaining ground from this 5-min chart from the Globex market.
Looks like a positive outcome today is possible due to some encouraging news coming from Europe.
The best way to trade for a long position today is to wait for a pullback after the open and analyze the price action.
Gauging the S/R price is the right area to put on a trade.
Let's see the action if there is a probable to trade, otherwise, we'll stay on the sideline.
Looks like a positive outcome today is possible due to some encouraging news coming from Europe.
The best way to trade for a long position today is to wait for a pullback after the open and analyze the price action.
Gauging the S/R price is the right area to put on a trade.
Let's see the action if there is a probable to trade, otherwise, we'll stay on the sideline.
Sunday, October 9, 2011
The market (YM) made a three day move upwards last week.
But the way I can analyze this daily chart is that it might stay idle for a few day(s) possibly by Monday or Tuesday then will stretch its trend from there.
It might take a while to move from the range, 10500 (support) - 11500 (resistance).
It is still a traders market from this area but it is still a good area to make a long position with a good price stop to make it sure not to incur (big) losses.
For the long term investors (fundamentalist) is not yet time to make a bet in the market due to unforeseen/unpredictable events that is coming from the economy of other countries.
But the way I can analyze this daily chart is that it might stay idle for a few day(s) possibly by Monday or Tuesday then will stretch its trend from there.
It might take a while to move from the range, 10500 (support) - 11500 (resistance).
It is still a traders market from this area but it is still a good area to make a long position with a good price stop to make it sure not to incur (big) losses.
For the long term investors (fundamentalist) is not yet time to make a bet in the market due to unforeseen/unpredictable events that is coming from the economy of other countries.
Subscribe to:
Posts (Atom)