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Is Anyone Trading Today? (NYSE:SPY), (NYSE:DIA)

Posted by Aadil on March 8, 2010 at 9:31pm
By on March 8th, 2010 3:35pm Eastern Time The media is bullish as the talking heads are all looking for the market to trade higher throughout 2010. The Federal Reserve Bank is bullish and says the economy is recovering, meanwhile, they continue to keep the fed funds rate at zero percent. The President's administration and those inside of it keep saying the recession is over as they also continue to sandbag the monthly job number. So I guess everything is OK. The major stock market indexes have recovered most of January's decline and everyone is bullish. The one problem that I see from where I'm sitting is the lack of participation. Today the SPDR S&P 500 ETF (NYSE:SPY) is trading just 91.5 million shares and the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading less than 5 million shares as of 3:15 pm EST. Where are the markets participants today? Really when you stop and think about it, where have they been in the past year? Every now and then the markets seem to have a surge in volume. However, most of the heavy volume days come when the stock market declines. There are a few exceptions when the markets have surged higher on strong volume trading days. However, the buy side volume days, can be counted on one hand. If everything is so great on planet stock market where are the participants and where is the volume?
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on March 8, 2010 at 8:25pm
US Markets adrift in neutral territory as the risk appetite cannot build on Fridays gains. GBPUSD losses +170 pts to $1.5030s on a combination of profit-taking and dovish comments from BoEs Kate Barker indicating a bumpy path to recovery while allowing for the possibility of further quantitative easing. S&P500 testing the trend line resistance from the Jan 11 high at 1140. GBPUSD hovers at the $1.5070s level indicated in the prior IMT, but any renewed selling in Asia could send cable back down to $1.4980. Watch out for UK Feb RIC housing figures at 0:01 (exp 35 from 32) and BRC retail sales. Euros failure was at $1.37 (lower than anticipated resistance of $1.3770) before retreating to $1.3630, now running the risk of calling $1.3570 as PM Papandreous speech was countered by critical remarks from ECBs Stark regarding the notion of a European rescue fund (EMF).
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Rising U.S. Dollar Keeps The Markets In Check

Posted by Aadil on March 8, 2010 at 6:30pm

By InTheMoneyStocks on March 8th, 2010 12:12pm Eastern Time Often when the dollar rises the market usually pullback. This is generally due to the fact that most commodities and inflationary stocks trade inverse to the U.S. Dollar. Should the dollar fade or sell off it is likely that the stock indexes will rally higher. It is also important to remember that the rising dollar does not have as strong of a negative effect on stocks when the stock market trading volume is light.
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Mixed Signals (NYSE:IWM), (NYSE:UGA)

Posted by Aadil on March 8, 2010 at 6:27pm

By Nicholas Santiago on March 8th, 2010 12:59pm Eastern Time Since February 5, 2010 the stock market has advanced sharply, erasing most of the recent January decline. One important index that has emerged as a leader is the Russell 2000 index. This index tracks most of the small capitalization companies that are traded by the public. When this index leads the market, this is usually viewed by traders and investors as a bullish indication. Essentially, investors are betting that small companies will do well and the economy is strong enough to support them. The Russell 2000 index can be tracked or traded by using the iShares Russell 2000 Index ETF (NYSE:IWM). While many traders and investors have jumped on board that theory, many others see existing problems. Currently the European Union continues to try and sort out possible bailouts for Greece and many other nations have severe national debt problems. There is also the case that can be made for huge skyrocketing deficits in the United States to grow on a daily basis into the trillions of dollars. Government central banks continue to print money and flood the market place with liquidity. This cannot be healthy in the long run. As proof, look at what happened between 2002 – 2007 when money was free and people were reckless. Can it be more simple than this? Perhaps we can tell when this stock market is going to pullback or reverse. Can it be as simple as gasoline prices? Every time gasoline gets too high at the pump the stock market seems to pullback or have a small correction. This phenomenon can be viewed by watching the United States Gasoline Fund LP (NYSE:UGA). If one looks at a chart they can simply see that every time that the United States Gas Fund trades above the 38.00 level the stock market pulls back. This phenomenon occurred in late October, and early January. Here we are again as the UGA approaches these high levels. Remember high gasoline serves as a tax on the consumer. In July 2008 it was high oil and high gasoline prices that broke the back of the stock market. It is still highly unlikely that the U.S. consumer can handle high gasoline prices with an unemployment rate near 10 percent and a foreclosure crisis that is still in full force.
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on March 8, 2010 at 11:25am
March 8, 2010 06:15 ET: European markets stall in Monday morning despite a 2% rally in Tokyo and Hong Kong, while Dow futures are unchanged. With equities have already rallied on Friday in response to US jobs data, the lack of US data today and tomorrow could allow the bulls to retest the mid Jan highs. AUDUSD breaks well above the 0.9080 resistance and could be set for further gains towards the 0.9230s, which coincides with the trend line resistance from the Nov high through the Jan high. GBPUSD stall below $1.52, with any deterioration in appetite likely to drag down cable back to $1.5090 (toppish oscillators in 3-hr chart). $1.5240 stands as the short-term obstacle in the event of fresh pick-up. markets await Greek PM Papandreou trip to Washington as speculation mounts about a possible IMF deal.
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Intraday Market Thought from Ashraf Laidi - http://www.ashraflaidi.com/forex-news/

Posted by Aadil on March 8, 2010 at 12:18am
March 7, 2010 19:01 ET: Its all about yen weakness in Asian trade as the combination of improved risk appetite after better than exp US jobs report and public statements from Japanese officials (adding to QE and allocating budget for FX intervention). CADJPY and NZDJPY among the best performing pairs, eyeing prelim targets at 88.50 and 63.90. Weekly candle in CADJPY was particularly bullish, suggesting the possibility for 89.40 especially amid the absence of key data in Mon and Tues. USDJPY eyes interim resistance at 91.35-0.
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Gold - March 07, 2010

Posted by The Trading Solutions on March 7, 2010 at 9:04pm
Summary030710gold1.bmpLong term outlook: UpMedium Term Outlook: DownShort Term Outlook: Sideways to DownRevision Point: Break above 1260Potential Medium Term Targets: 680 and lowerPreferred Strategy: Take short term positions only, till we see an end of the corrective phase..There is no change in the situation, as it appeared at the time of our last report. Both the alternatives presented in our last report are still valid. We present our current report with updated images and reproducing the relevant parts of the last report:With a completed wave 2 at the January 11, ’10 high (1161.75) followed by wave I.3 at the January 28, ’10 low, followed by a.II at the February 3, ’10 high (1125.10), wave b.II at the February 5, ’10 low. We are now at or close to the completion of what we expect to be wave c.II. However, there still seems to be a potential for the price reaching close to the 1138 to 1142 mark.030710gold2.bmpIt is also important to keep in mind an alternative interpretation of the move down since December 03, ’09, while planning any potential trades (as presented in the second image):With a possible wave 1 at the December 22, ’09 low (1074.90), followed by wave A.2 at the January 11, ’10 high (1161.75), wave B.2 at the February 5, ’10 low (1044.55), we are now in the making of a five wave advance to complete wave C.2. As per this scenario, our target for the completion of wave 2 will be above the January 11, ’10 high at 1161 and close to the 1185 to the 1190 level, but keeping below the December 3, ’10 highs at 1126.30).
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