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  • Global Market Wrap: Optimistic Markets 0 comments
    Dec 10, 2009 7:40 AM | about stocks: SPY, QQQ, ING, BAC, NSRGY, UBS

    TheLFB-Forex.com A Forex Trader Portal

    Global Market Wrap:


    Optimistic Markets

    Equity Futures:
    Dow +6.00. S&P +1.40. NASDAQ +2.00. Japanese Nikkei -30.00. German Dax +7.00.

    European Trade: European markets saw a mixed start around the opening bell, but shortly afterwards, the regional equity indexes started heading higher. This move was backed by S&P futures, which were testing the 1100.00 swing area as European markets moved higher.

    The European equity markets advanced approximately 0.50% in Thursday morning trade, in a trading session that will be dominated by central bank announcements. From the open of the session France’s CAC 40 rose 0.48%, while Holland’s AEX index advanced 0.80%. Slower gains came from Spain’s IBEX 35 index, which rose only 0.15%, following Wednesday’s debt outlook revision by the rating agencies to negative. Interestingly, the Nordic markets, which have held relatively well during the sell-off of the last few days of trading, are currently posting declines. Denmark’s OMX 20, Copenhagen, and Norway’s OBX indexes fell 0.20%.

    Central bank announcements were omni-present in the market during the European trading sessions. Among the most important, the Swiss Central Bank said that it would discontinue the bond-purchasing program, thereby exiting the quantitative easing strategy. At 07:00 EST, the BoE is expected to keep the overnight interest rate at record low levels, while continuing with the credit-easing plan. The ECB was also on the newswires during the European session, with top officials saying that Greece has one year to bring public finances under control, or Greek bonds will be disqualified from the ECB’s open market operations.

    S&P futures are currently testing the 1100.00 area, the swing point of the last month of trading. A break above this area will allow the S&P futures to re-test the 1110.00 area, near the high of the current year. Such a move will certainly be reflected in the global markets tolerance for risk, and will be accompanied by stronger European equity trade, and most likely by stronger commodity prices.

    TheLFB Charting LinkS&P Technical View: TheLFB Member Charts
    Overall View: Looking for an ending diagonal (reversal) pattern

    4 Hour Chart Flows: Mixed Price Points: 1066, and 1118 Looking for: An ending diagonal

    Momentum: S&P futures moved into long mode on Nov 13th and have held that trend, which has allowed the tests of the 4 hour chart support to be bought. There is a tight sideways channel forming and that is allowing the move from overbought to oversold and back again, to be completed over a 4-5 day period.

    Elliott Wave: S&P futures hit the lows of the week on Wednesday at 1084 where a bullish bounce appeared, as the market was unable to break through the support line of an ending diagonal pattern. Overall, we are looking for a near-term recovery on the majors and a decline at the same time on dollar index, which matches perfectly with S&P expectations.

    Wall Street closed higher on Wednesday after a support line test, which indicates a bounce to the up-side is close, and looking to move near to the 1105 area or even higher, before any down-trend can continue.

    A break of 1066 support will confirm a bear market, while a move through the 1118 top will signal a more complex wave 5) formation of an ending diagonal.
     

    Sector Moves: The momentum surrounding European stocks had been positive in Thursday trade. Retailers, food & beverage producers and insurers advanced more than 1%. At the same time, the heavily-weight banking sector added 0.80%, but basic materials companies posted very small gains, affected by the mixed trading session seen in the commodity market.

    The biggest decliners in Wednesday trade became the best gainers on Thursday. As such, the Greek and the Austrian financial system posted important gains, and recovered almost every point lost during the prior financial session. The same was the case for the Dutch bank ING, which advanced 3.7% after it was upgraded to “buy” by Bank of America. In the Swiss Stock Market, the gains were led by Nestle, which advanced 1.64%, UBS, which gained 2.20% and by Julius Baer Gruppe, which rose 2.10%.

    Economic Moves: The European Calendar was dominated by central banks, with investors expecting the SNB at 03:30 EST and the BoE at 7:00 EST. During the U.S. open, the market prepares for the U.S. and Canadian Trade Balances, and for the U.S. Unemployment Claims.

    Crude oil
    was recently trading at $70.78 per barrel, higher by $0.10

    Gold was recently trading higher by $6.00 to $1128.80.



    Disclosure: No positions
    Themes: Dax, Nikkei, CAC, AEX, IBEX, OMX, OBX, BoE, SNB, Crude Oil, Gold Stocks: SPY, QQQ, ING, BAC, NSRGY, UBS
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