The futures were flat going into the ADP Employment number. The ADP
Employment number gives the market a view of private sector hiring or
firing. With lofty expecations, the jobs number missed by quite a
bit. Economists had expected a rise of 40,000. The number, released
at 8:15am ET, came in at -23,000. This is a miss of 63,000. The
futures have sold sharply.
While the markets are lower, they may not sell dramatically today due
to the light volume… Continue
Added by Bryan Leighton on March 31, 2010 at 9:21am —
Since October 2008, the U.S. government has been spending a lot of
money, most of which it currently does not have. Simply put, to keep
the economy going the government has borrowed from other nations and
from the Federal Reserve Bank. The major foreign debt holders are
China, Japan, and Brazil. The capital borrowed from the Federal Reserve
Bank is simply printed. The national debt for the United States is now
estimated to be over $12 trillion dollars. I repeat $12… Continue
Added by Bryan Leighton on March 30, 2010 at 1:33pm —
The markets started the day with a small gap higher and quickly added to the gains on light volume. It seemed as if the DOW would make a run at the 11,000 level. Consumer Confidence was reported at 10:00am ET, showing a small positive increase. The index that measures the general publics opinion on the economy and how healthy they feel, rose to 52.5 in March from 46.4 in February. This was slightly ahead of expectations.
While this may have seemed like good news, the markets paid… Continue
Added by Bryan Leighton on March 30, 2010 at 12:47pm —
There are many factors contributing to the small upswing in the markets
today. The markets are hovering up about half a percent. The
interesting thing about the float higher today is that it could last
for the entire week. All the factors today, are factors that could
show up for the rest of the week in the markets. The biggest ones
revolve around light volume, based on the Passover Holiday and Good
Friday. This will keep some traders on the sidelines and volume… Continue
Added by Bryan Leighton on March 29, 2010 at 12:30pm —
With the meteoric rise in the markets of late, many are wondering if it
can continue. Problems are looming but in the last two months, the
markets have ignored them all, having only a handful of minor down
days. Can it continue? Here is a possible reason to say yes!
Volume next week should be muted due to three factors. The first is
Passover, a Jewish holiday which begins Monday night. Holidays can
always cause light trading. In addition to Passover, the… Continue
Added by Bryan Leighton on March 28, 2010 at 1:00pm —
The markets are trading higher today, retracing approximately 50% of
the drop yesterday, from the highs of the day to the lows of the day.
It was a monstrous reversal in the last two hours of trading. The SPDR
S&P 500 ETF (NYSE:SPY) hit my master level at $118.15, crossing it
by $.02. Then, as if the end of the world had come, the markets
dropped like a rock. Again, today we are seeing a 50% retrace of that
move, at this point in the day.
The markets… Continue
Added by Bryan Leighton on March 26, 2010 at 11:48am —
The markets gapped higher today, surging like the usual fluffy, happy
market we have seen since the February 5th, 2010 bottom. Volume was
extremely light but a Master Level was lurking according to my hardcore
calculations. Over the last two weeks, I had been trying to figure out
why, when and how the market was going to reverse after such insanely
continuous gains. Day after day this market has inched higher.
After countless hours of analysis, number… Continue
Added by Bryan Leighton on March 25, 2010 at 5:07pm —
Since the stock market rally began in March 2009 much of the focus has
been on the U.S. Dollar, gold, oil, copper, and the financial stocks.
While these sectors have all been very important to the rally, there is
one sector that has been overshadowed and may be the most important. It
is the 10 year bond yield.
As the U.S. Treasury and the Federal Reserve Bank blatantly try and
inflate the markets back to health, there is one problem that stands in
Added by Bryan Leighton on March 25, 2010 at 3:59pm —
The markets gapped higher today on the back of a downgrade of the debt
rating of Portugal and a resulting surge higher in the dollar. While
the gap down in the markets was solid, this is a common occurrence for
the markets as they usually just get propped up on the open and trade
sideways to higher all day. Today, however, could be different. The
markets gapped lower only to trade back up towards the flat line in the
first hour of trading. This looked normal, this… Continue
Added by Bryan Leighton on March 24, 2010 at 12:07pm —
Financial stocks are weaker today as many investors fear the bulls eye
is directly on stocks like Goldman Sachs Group, Inc. (NYSE:GS),
JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company
(NYSE:WFC), Morgan Stanley (NYSE:MS) and others. Why you may ask?
President Obama has just passed his most important agenda. The
healthcare reform bill will define him in a historical sense and he
knows it. This bill was his number one priority for his presidency… Continue
Added by Bryan Leighton on March 22, 2010 at 1:15pm —
The markets are setting up for a showdown. Simply put, volume has been
muted of late but may change shortly. The market awaits further
European information on how bad the Greece crisis continues to be and
in reality, who is next? The markets seem to be sweeping it under the
carpet, but everyone knows Greece was just the first of many to come.
For now, the markets are content to ignore it.
Volume indicates lack of institutional involvement. Over the last… Continue
Added by Bryan Leighton on March 21, 2010 at 12:39pm —
The markets are selling sharply on the best volume of the week. The
healthcare vote this weekend looks like it might pass and the markets
are getting jittery. The markets hate change and worry about continued
government reckless spending. In addition, there will be new taxes
imposed on capital gains which hit directly at the core of Wall Street.
While the markets seem to be in a slight panic over health care reform
that may pass, options expiration is also at… Continue
Added by Bryan Leighton on March 19, 2010 at 12:10pm —
Ford Motor Company (NYSE:F) is forming what could be a tell tale sign
of a top on the daily chart. The candle formation is known as a
possible topping tail. A topping tail occurs when a stock runs up
intra day early and then pulls back later in the day. It creates a
long tail on the top and a close in the lower 25% of the candle.
In addition, one must analyze the daily chart for an over extended
rally. Ford Motor Company clear is extremely extended on the… Continue
Added by Bryan Leighton on March 18, 2010 at 1:41pm —
The dollar, PowerShares DB US Dollar Index Bullish (NYSE:UUP) has
jumped dramatically higher today as the Euro, CurrencyShares Euro Trust
(NYSE:FXE) fell off a cliff. Fear appears to be emerging over future
problems in Europe. We all know about the problems with Greece but
this is just the start I fear. Where there is one rat, there is a
hoard. Be ready for the next one to emerge soon in my opinion.
While a dramatic rise like this in the dollar usually has a… Continue
Added by Bryan Leighton on March 18, 2010 at 11:55am —
The markets are all hovering higher today. Dow, Nasdaq and S&P 500 up over half a percent on the day. The SPDR S&P 500 ETF (NYSE:SPY) is higher by .60%. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is up the same. Since the February 5th bottom, the markets have gone straight higher. Rumors and speculation jump out on why the markets have done this. Across the board, it is looking more and more suspicious. Suspicious? Yes, it is looking like there are other factors at work in… Continue
Added by Bryan Leighton on March 17, 2010 at 2:01pm —
UAL Corporation (NASDAQ:UAUA) and most of the major airlines are
trading lower this morning. The airline sector has had a terrific rally
recently soaring to new 52 week highs.
Many of the airlines have been reporting an increase in passenger
revenue during the first quarter. However, the rumors of possible
consolidation in the industry have been one of the main catalysts for
the strong rally from early February.
The one negative for the airline… Continue
Added by Bryan Leighton on March 17, 2010 at 11:19am —
Note how last Friday the markets hit a new 52 week high of $115.97.
Today we slammed into that level and rose above. As the markets pulled
back, the former resistance level of $115.97 now becomes support. Note
how the market is gently bouncing off that level. The markets are a
Added by Bryan Leighton on March 16, 2010 at 1:33pm —
The SPDR S&P 500 ETF (NYSE:SPY), iShares Russell 2000 Index ETF
(NYSE:IWM), and the PowerShares QQQ Trust, Series 1 ETF (NASDAQ:QQQQ)
are all at new 52 weeks highs surpassing the recent January top. The
bull run from the March 2009 lows continues higher for these major
indexes. However, there are a few individual leading stock names that
are not at new 52 week highs. These stocks have not displayed the same
relative strength as the indexes and must be watched… Continue
Added by Bryan Leighton on March 16, 2010 at 1:22pm —
The markets are trading lower today on the back of some renewed global worries. The dollar is higher. The in spirit of bear flag highlighted by us on Friday did play out
nicely. A new bear flag is starting to form. It may play out tomorrow
as the volume is extremely light. Light volume can cause patterns to
fail on occasions.
Stocks in motion today are Wal-Mart Stores, Inc. (NYSE:WMT). While the
rest of the market is weak,…
Added by Bryan Leighton on March 15, 2010 at 2:44pm —
As I wrote about this weekend, the markets had a beautiful in spirit of
bear flag. Sure enough, it is playing out today with a nice sharp sell
off in the markets. As mentioned to my premium members on Friday, I
put the chance of a top at 70% near term. So far the markets are
playing this out like a fiddle.
The SPDR S&P 500 ETF (NYSE:SPY) is lower by $0.76 (-.65%). There
has been really no negative news today which enforces the whole idea
that charts… Continue
Added by Bryan Leighton on March 15, 2010 at 12:03pm —