Morning Update: 8/7/2012

It was a disappointing day on Wall Street on Monday, even though they did close with gains on the day. Since there is an uncertainty as to which way the market will go on Tuesday, depending on whether secondary support will hold or not, we will take a look at both longs and shorts.

There are many warning signs. Overbought conditions with declining technicals is for us a strong clue. Breadth continues to lag the indices suggesting that the stocks which make up the indices and the markets are losing the interest of buyers and flatting out at the tops. This close to a 52-week high the New Highs should be booming around 350 per day, not in the low 200’s.

Tuesday, August 7

Economics
10:00 JOLTS Job Openings – prior 3642
3:00 Consumer Credit – consensus $10.00B, prior $17.12B
11:00 Fed buying $4.25b-5b in 6 to 8-year range
11:30 Treasury selling 4-week bills
1:00 Treasury selling $32b 3-year notes
04:30 AUD RBA Rate Decision
05:45 CHF Unemployment Rate
07:15 CHF CPI
08:30 GBP Industrial Production
09:00 EUR Italian GDP
10:00 EUR German Factory Orders
23:50 JPY Trade Balance
11:00 Greece to sell EU625m 6-month bills
12:00 EFSF to sell EU1.5b 3-month bills

Earnings
Before:
Sirius (SIRI) EPS 2c
MGM (MGM) -15c
CVS Caremark (CVS) EPS 74c
After:
Walt Disney (DIS) EPS 93c
Priceline.com (PCLN) EPS $7.36
Express Scripts (ESRX) EPS 82c
Cablevision (CVC) EPS 19c

There were no important economic releases on Monday and there are none scheduled for Tuesday.

 

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