logo
  Join        Login             Stock Quote

Quick Take: Morning Look

 December 20, 2012 06:15 PM


Markets are roughly flat in early trading.  Yesterday the markets really tailed off at the end of the day and ended on a weak note.  It's interesting that there is usually at least one big down day during the week of options expiration, so maybe yesterday was that day.

I'm a little surprised the market didn't bounce more on some of the positive economic data we got.  That could indicate some more weakness later in the day.  And as we get closer to Friday volume levels should tail off as people leave to take a long holiday weekend.  The market is open for a half day on Monday, but lots of folks will simply take off and get in a 4-5 day weekend.

The final estimate of Q3 GDP came in much higher than expected at 3.1%.  That's pretty solid growth, but of course its a rear view mirror datapoint, and at this point we are really concerned with how 2013 GDP will come in.   Current estimates are for growth of 1.5% - 2.0% depending on how fiscal cliff talks effect spending and taxes.

[Related -Upbeat Forecasts For US Housing Sales In March]

The Philly Fed survey ticked up to +8.1 for December from a low -10.7 reading last month.  And existing home sales rose to 5.04 million units from 4.76 million the previous month.

Asian markets were mixed overnight, after the Bank of Japan upped its asset purchase program by another 10 trillion Yen.  European markets are also mixed this morning.

The dollar is higher and metals are getting hit hard.  Gold prices are lower by $27 to $1640.  Copper prices are down -2% on the day and silver prices are off by more than 4%.  Lots of selling pressure.

[Related -Happy Birthday, Moore's Law - Pearls of Wisdom for Investors]

The 10-year yield is hovering near 1.79%.  And the VIX is flat at 17.40.

Trading comment: With more individual stocks showing positive action, its hard to want to fight the tape here.  I am no more confident that a grand bargain is reached regarding the fiscal cliff.  Most congressmen are getting ready to go home for the holiday.  So they will have less than a week to get something done when they get back.  That should make for interesting action in the market.  And I still wouldn't rule out a brief pop on any hastily crafted agreement combined with some can kicking provision to push things into 2013.  But as we enter 2013 we have been moving our asset allocations toward a more conservative posture.

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 imageUpbeat Forecasts For US Housing Sales In March

The Fiscal Times advises that the “the housing market is about to perk up.” One of the reasons for the read on...

article imageHappy Birthday, Moore's Law - Pearls of Wisdom for Investors

As Moore’s Law turns 50, we reflect on technology’s incredible history and limitless read on...

article imageIndex Investing Is Not Inherently Socialistic

How does capital get allocated to the public stock read on...

article imageDon't Let Fear of a 'Grexit' Keep You Out of European Stocks

After nearly three years of extremely weak economic growth, the European Central Bank is finally delivering read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Index Investing Is Not Inherently Socialistic
More Articles on: Finance



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.