Many traders and investors will follow the transportation index very closely. When the transport stocks trade higher it is usually considered a sign of expansion and economic growth. On the flip side, when the transport stocks decline or sell off it is usually a sign of economic contraction and slower economic growth. This morning, the iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is trading lower by $1.57 to $91.86 a share. This is a 1.60 percent decline for this leading and highly followed sector. Short term traders can watch for some intra-day support around the $91.50, and $91.00 levels.
Some of the leading transport stocks that are declining lower this morning include FedEx Corp (NYSE:FDX), CSX Corp (NYSE:CSX), and Union Pacific Corp (NYSE:UNP). All of these leading stocks will usually trade right in line with the S&P 500 Index which is also trading lower to start the day.
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Apple Inc (NASDAQ:AAPL) is declining lower this morning with the major stock indexes. APPL stock is trading lower by $3.70 to $423.70 a share. The popular tech stock will usually hold up well and often rally into earnings. Short term traders can watch for intra-day support around the $422.00, and $419.00 levels should the stock trade down there. As for how the stock will react after the earnings announcement this afternoon is anyone's guess. Trading a stock into earnings is a very risky gamble as the reaction after the announcement could go either way.
The markets are hovering slightly lower on the day. Overnight, more worries crept out of Greece causing the futures to fall and the Dollar to pop. However, once the market opened, the light volume float was back on. This has been the common theme of late and is likely to continue as long as volume remains light. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $131.26, -0.32 (-0.24%).
All eyes are on Apple Inc. (NASDAQ:AAPL). They report earnings after the closing bell today. This will be a major report for the technology sector and likely a market mover.
The markets keep inching lower early in the day when volume is highest, then floating higher later on. This tells the top traders that the market is overbought but the little investor continues to be caught in the hype and buy. The lack of volume means that big players are not buying but allowing the small investor to push things higher. Essentially, this is the little investor getting long before the bottom falls out.
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Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
GDP revised to -0.3 % , Strong Yen forecast to hit exports
http://www.marketwatch.com/story/japans-central-bank-cuts-economic-forecast-2012-01-23
4 experts asked .........
http://www.cityam.com/wealth-management/uncertainty-holds-sway-over-the-ftse
"The FT reported that Merkels coalition is considering the dual bailout funds if strict prohibitions against deficits are unveiled. Shortly after the report, German officials issued denials but the euro held on to most of its gains."
Presented by Nick Santiago January 23, 2012 03:12PM
These days the trading volume is extremely light. The three month average trading volume on the SPDR S&P 500 Index (NYSE:SPY) is around 202 million shares a day. The trading volume on the SPY since December 19, 2012 has been around 125 million shares a day. Normally, the daily volume will decline around the holiday period, however, the volume will usually pick up around the corporate earnings season. So far, the trading volume on the SPY and the major stock indexes has not increased at all during this earnings season. Light volume will generally favor the upside in most markets. All traders and investors should remember the old market adage that states, a trader should never short a dull market. Well, light volume is the word that should be used instead of the word dull.
This afternoon, at 3:00 pm EST the trading volume on the SPY is around the 98 million level. Once again, the SPY floats higher throughout the day after a minor intra-day decline. All traders must respect the upside when the markets have this ridiculously light volume day after day. If corporate earnings and European news cannot bring volume into this market perhaps it will remain this way for a little while longer.
This afternoon, at 3:00 pm EST the trading volume on the SPY is around the 98 million level. Once again, the SPY floats higher throughout the day after a minor intra-day decline. All traders must respect the upside when the markets have this ridiculously light volume day after day. If corporate earnings and European news cannot bring volume into this market perhaps it will remain this way for a little while longer.
RESISTANCE? There is no resistance in the land of legal Ponzi. Ponzi only knows support
http://www.bbc.co.uk/news/business-16661333?utm_source=twitterfeed&utm_medium=twitter
