logo
  Join        Login             Stock Quote

Stock Market Opening Report - November 20, 2012

 November 20, 2012 01:49 AM


(By Rich Bieglmeier) Hey, hey stocks turn green for a big day to start Thanksgiving week. The Dow picked up 1.65%, the S&P 1.99% and the NASDAQ 2.21%.  The thrust higher was compliments of rumored niceties between Republicans and the White House regarding the fiscal cliff. Trimming $400 million a year for the next 10 years will keep the debt from ballooning to $26 trillion. No, instead it will be $22 trillion – give or take a trillion or so depending on GDP growth.

The whiff of bipartisanship couldn't have come at a better time as Europe has double-dipped and debt negotiations are getting testy. The EU could fall back to the "she loves me not peddle" and roil stocks, again.  

It will be important for stocks to have a follow through day today. The momentum model iStock follows shows the short, medium, and long-term needles pointing up; however, Tuesday/Wednesday could be make or break days for any continued ride higher.

[Related -Ford Motor Company (F) Q2 Earnings Preview: Light on the Top Line?]

All three levels of momentum are pressed against their respective upper trend-lines which connect recent pivot tops. If MO can move on through resistance, then we can see the NASDAQ making its way towards 2,950ish, the Dow 13,000ish, and the S&P 1,400ish.

Ben Bernanke could help the equity markets reach technical targets when he speaks later today at the Economic Club of New York. After his speech, the Chairman will take questions for 20 minutes or so, and his answers could give traders the juice they need or a punch in the gut.

We suspect Ben will follow Tim Geithner's suggestion that the debt ceiling limit should just be eliminated. We can see Bernanke hinting at further Fed action in light of last week's Jobless Claims. A few more Jobless Claims of more than 400,000 and an uptick in unemployment could have the Federal Reserve turn the digital-dollar spigot wide-open. Unlimited debt and dollars, what could go wrong with that?

[Related -Tripadvisor Inc. (TRIP) Q2 Earnings Preview: On Target Enough?]

If Geithner and Bernanke can keep stocks rolling today, iStock sees Industrial Engineering, Specialty Retail and Footwear as sectors that could be hot. On the flipside, Telecom and Software look icky; investors might consider avoiding both in the next few weeks. Come back later today to see our full list of bullish and bearish sectors.

Happy Trading

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.