Join        Login             Stock Quote

Stock Market Opening Report - December 11,2012

 December 11, 2012 12:57 AM

(By Rich Bieglmeier) Stocks tried to wiggle their way higher to start the week, but the 50-day moving averages are a tough hurdle to overcome, especially on the first attempt. Monday was about as uneventful of a day as iStock can remember since the summer time trading blues.

Volume for the NASDAQ, Dow, and S&P were slightly ahead of Wall Street's totals on the Wednesday before Thanksgiving. Volume is a measure of how committed investors are to the current direction. With each passing day, bulls seem to be unsure about their next step.

Investors need to ask themselves, why did high frequency trading programs go into hibernation mode to start the week? The answer is most likely because they are waiting for the Federal Reserve's Wednesday announcement. Just remember, since the Fed started making these meeting public, stocks tend to rise in the 24 hour leading up to the announcement; in this case, from 2 pm Tuesday through 2 pm Wednesday. So, if you are going to make short-term trades, the calmest weather could start a little later today.

[Related -Automating Ourselves To Unemployment]

We'd expect traders to remain in a holding pattern until the FOMC news is out. There is nothing on the economic calendar today that should upset or excite bulls or bears. With the indexes tightly positioned to their 50-day marks and uncertainty over the fiscal cliff and Fed's next move, it's possible the markets stay in a tight range today.

Longer-term, our sector performance review shows a multitude of new sectors jumping into one of our bullish camps. Sixteen industries are showing signs of outperformance for the weeks ahead. That stands against nine industries that could underperform in the days and weeks to come.

[Related -Fed: Waiting For June… Or Godot?]

Small and mid-cap stocks stand out in our review and are pulling to the front of the line. We can't say for sure this is the case, but the last leg of a bull's run is usually headed by smaller stocks. This rally has been moving forward since 2009, and the last leg has to come sooner or later.

On the bearish side of the scale, telecom stocks remain underwater. Investors looking for entry points into the sector might consider waiting for better prices. At the very minimum, the industry charts indicate telecom stocks will fare worse than the S&P and most other sectors.

For the full report, come back later today.

Happy Trading.



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

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

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.