A Volatile Stock Session, USD/CAD at a Critical Level

Tags: Tips, Stocks, Forex, Confidence, House Data, China
Economic data had a major impact on the intraday session yesterday, increasing the daily volatility. After approximately 11 days of gains the S&P500 got stopped in its tracks, as the consumer confidence result weighed severely on investors, sending them back into the Dollar safe-haven.

The start of the U.S stock session yet again encouraged buyers back into the market as the S&P/CS Home Price Index showed for the first time in nearly 3 years an increase. One must note that the index measures the price of houses in 20 regions in the U.S, allowing investors to analyze the strength of the housing market. Even though the major indices opened with minor gains, a majority of them quickly lost their steam, as consumer confidence figures hit the board, showing that consumers are still not overly impressed with the recent economic activity. Confidence showed a 46.6 figure compared to an expected 49.00 points.
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Earnings are Driving the Indices Higher

 Tags : Apple, Stock, Dupont, Caterpillar, Aud, Pound, Dollar, Forex, Yahoo
A lot of tension was felt during the U.S stock session yesterday, as Ben Bernanke gave his quarterly statement about the economy and future outlook, while certain large caps released their earnings.

Fed Chairman Ben Bernanke delivered his testimony on Capitol Hill, mentioning that even though the rate of the contraction is declining, the U.S economy still has a long way to go until it begins to show healthy economic growth. The chairman mentioned that economic growth is expected throughout 2010, but it could still be accompanied by high unemployment. Bernanke also touched on the inflation subject, preparing investors in advanced, incase monetary tightening will be required. To date the Fed has numerous methods that it can carry out to prevent inflation, some of which include selling a portion of its long-term securities holdings and selling bills and deposits.

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There Still Remains One Barrier

 Tags : Stocks , Goog , Goldman Sachs , Cit , Pound , IMF
After weeks of swinging from side to side, the major U.S stock indices bounced higher as traders and investors alike pulled money out of safe-haven assets and rushed back into riskier ones. The beginning of last week already signaled to traders that something promising was about to happen, as the S&P500, the broader market index, bounced off its 200 day moving average, after forming a tri-star doji pattern. (Please note that a tri-star doji is quite rare and will often signal a change in trend).

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Higher Gas Prices Give CPI a Lift, But Annual Prices Drop Most Since 1950

Tag : S&P500, Head and Shoulders, Stocks
At the start of the week, we posted a
potential inverted head and shoulders pattern on the S&P500.
Yesterday's session was characterized by increasing momentum as the
major indices soared higher. The S&P500 broke major resistance and
held onto its gains throughout the whole of the session.
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The sun is starting to shine on Wall Street

Tags:Dollar, Cit, S&P, Intel
Intel encouraged buyers to come back into the market yesterday, sending the indices soaring at the start of the session. Following Goldman Sachs positive result, Intel showed investors that the computer industry isn’t as bad as previously thought.  The world’s largest micro processor hinted that the economic future could be starting to improve.

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Goldman Sachs vs. Intel

Tags:CIT,GS,Intel,Dollar,Forex
The U.S market continued to climb higher yesterday, as additional buyers drove the major indices to a positive close. Apart from economic data, Goldman Sachs and Intel both released their earnings reports, having an impact on the intraday session.

Goldman Sachs beat analyst’s expectations, showing increasing profits for the second quarter. Even though the results were positive, the stock failed to present a dramatic move, finishing the session with a gain of only 0.15%. Please note that the stock is currently trading around major resistance of $150, a level that could lead to selling pressure, should the indices fail to continue their recent rally.
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Has the S&P500 found Concrete Floor?

Tags: GS,Dollar, S&P500, IMF, Forex
Bullish traders jumped for joy during yesterday’s U.S stock session, as the S&P 500 managed to find some ground, bouncing off critical support. Even though certain stocks failed to present daily strength, further weighing on investor’s sentiment, the financial sector managed to pull the indices higher, as the sector closed with a gain of 6.4%. The banking industry was the leader of the day climbing by over 6.50% while REITs also received a boost, gaining by 4.38%. The S&P500 finished the session with a 2.49%.
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Dodjit's stock and Forex video briefing for 07 13 09

Dodjit's stock and Forex video briefing for 07 13 09

Adapt Your Trading Style

Tags: Dollar,  Euro, Technical chart analysis, Cad, Pound
  (Euro / Dollar) - Daily Chart

Direction of Trade (Long term):

Check Out  the full Technical Chart Analysis  at dodjit.com

Adapt Your Trading Style

Tags: Dollar, Boe, Euro, PPIP, Tarp
‘A stagnant situation can be boring for some, yet very profitable for others’

The U.S markets continued trade within range last week, closing Friday’s session at critical levels. News headlines had a major impact on the trading sessions, as U.S officials mentioned that they could be ready for round two, using further stimulus to combat the economic situation.

Tuesday’s session turned out to be the most volatile one, as the government released its PPIP program, another scheme which derives from the TARP program to help clear the toxic assets off bank’s balance sheets. Furthermore, President Barak Obama mentioned that another stimulus package could not be ruled out, especially due to the slow rate of recuperation.
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On 880

Tags: Dollar, 200 day moving average, Forex,BOE, Canada
Despite that fact Goldman Sachs helped to support the intraday session, leading the banking sector higher. The financial sector was the gainer of the day, closing the session higher by 1.26%. The loser of the day was health care, dropping by 1.26%.

To date the S&P500 is trading on its 200 day moving average around critical support. Even though Wednesday’s session presented increasing high selling volume and the daily candlestick formed a doji, showing the uncertainty in the markets, yesterday’s session failed to present any follow through. On one hand the 200 day moving average and the 880 support level could support the current price. On the other hand a bullish candle is required, for the index to hold above current levels. In similar scenarios, the markets tend to give way, if no buyers come into the market, driving the price higher.

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Third Quarter has Started

Tags: Dollar, GBP, Alcoa
Alcoa’s results opened the third quarter yesterday, showing a loss of $454 million. The Aluminum Company stated that due to the decrease in demand of cars and construction, the price of aluminum had dropped severely throughout 2008-2009. Despite the heavy loss, the company did beat analyst’s expectations, therefore sending the stock higher. AA (Alcoa) closed the session with a gain of 4.12%

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PPIP – sounds like some type of Morse code, no?

tags: PPIP , Dollar, USD/JPY,Pound
The news immediately spooked investors
knowing that further stimulus means further debt for the U.S economy.
In today’s market, the imbalance between government’s debts has reached
such an extreme that countries with surpluses are now concerned that
the U.S government will not be able to repay borrowed money. With a
current debt reaching approximately $11.7 trillion, many are worried
that another stimulus will put extreme pressure on the U.S, something
that could lead to further problems in the long term.
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Technical chart updates 07/05/09

  (Euro / Dollar) - Daily Chart

Direction of Trade (Long term):
See the full chart update at : dodjit.com

A Bump in the Road, or Signs Ranging Patterns

Tags : NFP , SPX, Dollar , Rate Decisions
From a line chart point of view, the
NFP result is still showing a gloomy picture but has managed to
distance itself dramatically from January’s lows, as certain sectors
have shown mild improvement during the second quarter. Last’s weeks
results showed that the current recession is far from over but didn’t
indicate that the situation is getting worse. One must note that
especially towards the beginning of a new economic cycle, employment
levels can present extreme volatility, bouncing up and down, as
companies hit by the recession’s impact continue to fault, while new
ones start to employ.

In addition, if we plot some technical
analysis on the NFP chart it we can see that the figures are still
above their prior lows. It will be interesting to see whether next
month’s result will manage to present a higher-low, regaining
investor’s confidence.
 

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Bounced Off the 200 Day Moving Average

Tags :


AUD
,


Dollar
,


RBA
,


Forex
From a technical point of view the broader market continues to remain in a range, lacking direction.





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What is going to spark movement today?

Today’s
session could break the recent market boredom, especially due to the
vast amount of data being released. The two major events are going to
be the ECB’s interest rate decision and the
employment figures from the U.S. While the decision itself is going to
be an important one, something that could affect the Euro crosses, most
investors will scrutinize the ECB’s statement that will explain how
they plan to deal with their economy’s problems. Last time round the
ECB failed to present any major statement sticking to his previous
comments, regarding bond purchasing. One must note that since the ECB’s
last meeting certain sectors in the economy have shown mild
improvement, which could yet again lean Trichet to a more subtle
speech.

Over in the U.S, the unemployment rate is
expected to reach a whopping 9.6%, after presenting a 9.4% result last
month. Many are questioning the impact of this result, wondering if the
volatility will manage to break the indices and currency pairs out of
range, or whether the movements will only be a 1 minute thing,
especially as the 9.6% figure is already baked into the market’s price.

As
stated in numerous reports the markets are still holding around current
levels, even when analysts are now predicting double digit numbers.
With a 25 year high unemployment rate and continuing problems in the
economy, it will be interesting to see if further job losses will have
a negative impact this time round. One must note that should the result
diverge dramatically from the expected it could send investors back
into safe-haven assets.

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Are You Prepared?

A False Break on the Pound

On the Forex market the Dollar
index continued to trade around recent levels, regaining its strength
after a three day loss. An increase in volatility was felt during
yesterday’s session as the EUR/USD swung from side to side, while the
GBP/USD presented a false break.

Germany also had a mild
impact on the market, releasing its unemployment rate during morning
hours. The Euro-zone’s largest economy showed that their unemployment
problems could be improving, releasing a 31k result, compared to an
expected 44k. Even though the data had an immediate impact on the
EUR/USD, sending it higher, the major could hold on to its gains,
losing its steam throughout the session, as the negative U.S stock
session sent investors back into the Dollar.

The GBP/USD also
presented a volatile session as the revised GDP and the business
investment figures both showed negative results. The U.K showed that it
had shrunk by 2.4%, while the Business Investment dropped by -7.6%.
After climbing and presenting a break out at start of the session the
Pound reversed sharply heading back into range.  Yesterday’s session
was characterized by a false break, which ended dramatically lower. For
confirmation of a true break one should wait for a close above critical
levels.


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also avalible at dodjit and you tube, The economic fairy tale