logo
  Join        Login             Stock Quote

No Catalysts To Keep Stocks Up

 January 08, 2013 12:17 PM
 


The markets are lower in early trading.  Yesterday the indexes recouped some of their losses into the close, but this morning the SPX is breaking below its 3-day support levels.  I think this is mostly profit taking after a big run in the market as opposed to news driven selling.

We are getting into preannouncement time for any companies that don't think they are going to make their quarterly numbers this time around.  GameStop (GME) is down -10% after reporting disappointing holiday sales.  YUM is also down -4% after the company lowered its sales forecast for its China division.

Telecom stocks are weak this morning also.  Rumors are that Verizon may purchase Vodafone's stake in Verizon Wireless.

[Related -Texas Roadhouse Inc (TXRH): Beef Prices Rising - Who's At Risk?]

Asian markets were mostly lower overnight.  Japan's finance minister said the country would use its fx reserves to purchase European Stability Mechanism bonds in an effort to weaken the Yen.

European markets are mixed.  Eurozone unemployment came in at 11.8%.  And Eurozone consumer confidence was in line at -27.0, a low figure.

Commodities are mixed this morning as the dollar is rallying.  Oil is a bit lower near $92.90, but gold is bucking the trend and trading higher to $1654.

The 10-year yield is easing back more to 1.87% following last week's spike higher.  And the volatility index is up 3.5% again but still hovering at very low absolute levels of 14.25.

Trading comment: Investor sentiment remains a bit complacent at this juncture.  I have been looking for some consolidation in stocks which should also work off the short-term overbought condition.  While it is true that the number of stocks breaking out to new highs has been growing, be wary of stocks that disappointed last quarter and could be set to disappoint again.

[Related -GameStop Corp. (GME): GameStop Premiums Reflect Worries]

KAM Advisors has long positions in YUM, VZ

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 imageLevel 3 Communications, Inc. (LVLT): A Good Time To Buy Says Macquarie

On a day Wall Street is struggling to advance, Level 3 Communications, Inc. (NYSE:LVLT) is having no such read on...

article imageAbercrombie & Fitch Co. (ANF) Q2 Earnings Preview: The Unkind Quarter

Abercrombie & Fitch Co. (NYSE:ANF) will be holding its second quarter 2014 earnings conference call for all read on...

article imageWorkday Inc. (WDAY) Q2 Earnings Preview: Built In Surprise

Workday Inc. (NYSE:WDAY) plans to announce its fiscal 2015 second quarter results after market close on read on...

article imageArcelorMittal SA (ADR)(MT): Steel Stocks about to Get Red Hot

For the second consecutive day, a major broker upgraded a steel company by advancing their recommendation 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.