E-Mini S&P 500: A Merry Market Move

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Includes: AA, BA, BAC, C, CAT, GE, HAL, HPQ, JPM, XLF
by: DeWayne Reeves

The E-Mini S&P 500 broke the decline to create a bit of hope for that yearly Santa Claus rally! It was all about jobs and housing. Lately, the Unemployment reports have shown significant improvements. The U.S. Housing Starts and Payments today reflected a 9.3% rise in November with permits at 5.7%. This was the highest in 1½ years and the most significant trace of recovery.

Housing Starts was up to an annual rate of 685,000 units increased by 9.3% while expectations were for 635,000 annual unit rate. The new permits were up to 681,000 unit rate advancing by 5.7%. U.S. rental vacancies were down to 9.8% in the third quarter from 11.1% in 2009. U.S. Housing Starts equates to new employment, but is only a small part of the GDP. Housing starts for multi-family housing were up 25.3% last month to 238,000 unit rate. Single-family home construction was up 2.3 % to 447,0000 unit rate.

The banking sector had a huge boost today as the Federal Reserve introduced new rules regarding the capital and liquidity of U.S. banks to parallel foreign banks. The German business sentiment was up again for the second straight month! The Italian and Spanish bond yields were down possibly with investors looking for the banks to borrow from the European Central Bank (ECB) and then purchase a higher yielding debt instrument with the proceeds. The "fiscal compact" possibly will be backed by the 26 members of the European Union other than Britain.

The European Union leaders are scheduled to meet on January 30th to discuss the plans for the stability plight! Clearly, the U.S. is showing recovery while other nations may be still launching plans for recovery.

The market is showing U.S. at least the precursor to the Santa Claus rally!

On the stock side: JP Morgan Chase and Co. (NYSE:JPM) was up 4.98% to $32.23. Citigroup Inc. (NYSE:C) was up 4.51% to $26.15. Bank of America (NYSE:BAC) was up 3.91% to $5.18. Alcoa Inc. (NYSE:AA) was up 3.75% to $8.85. Boeing Co. (NYSE:BA) was up 3.65% to $72.72. Caterpillar Inc. (NYSE:CAT) was up 4.99% to $91.60. General Electric Co. (NYSE:GE) was up 2.40% to $17.27. Halliburton Co. (NYSE:HAL) was up 8.08% to $33.296. Hewlett Packard Co. (NYSE:HPQ) was up 1.63% to $25.54. SPDR Select Sector Fund - Financial (NYSEARCA:XLF) was up 3.79% to $12.72.E-Mini S&P 500 Chart.

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Wednesday, what to expect! We are technically in 6th day sell mode on the Daily Chart unless the E-Mini S&P 500 penetrates $1252.00! Wednesday, we anticipate an inside to higher day! Today’s range was $1237.25 - $1198.75. The market settled at $1236.00. Our comfort zone or point of control for this market is $1223.00. Our anticipated range for Wednesday’s trading is $1244.50 - $1221.50.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.