Morning Update: 8/9/2012

The day started out with a move down, a bounce and another move down that held. The sharpest part of today’s rally came in the morning when the Nasdaq 100 went from 2705 to 2721, a good 16 points. The S&P 500 rallied from 1396 to 1404. That was about it, though. They pulled back in the afternoon in an orderly fashion forming wedges. They tried to pop out in the last hour, but couldn’t, rolled back into the close, and bounced in the last few minutes.

Net on the day, the Dow was up 7.04 at 13,175.64, about 27 points off its high and 60 points off the low. The S&P 500 was up .86 at 1402.21, only 2 points off its high and 6 points off the low. The Nasdaq 100 was down 3.14 at 2714.02, 7 points off the high and 9 points off its low.

So it was a mixed session, with mid-range closes. The technicals were flat.

Advance-declines were ahead by just 65 issues on New York Stock Exchange, and down by 300 issues on Nasdaq. Up/down volume was 3 to 2 positive on New York, with total volume of roughly 600 million shares. Nasdaq traded 1.7 billion, and had a 3 to 2 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices dropped early, back and filled, held support, came on strongly late morning, and reached the session highs as resistance proved futile today, particular the declining topsline. They then came down in kind of falling wedges before trying to bounce late in the session, and eventually backed off to close mixed on the session.

There were no gains or losses on both indices. Perhaps, it was a consolidation day.

Thursday, August 9

08:30 Initial Jobless Claims – consensus 370K, prior 365K
08:30 Continuing Claims – consensus 3272K, prior 3272K
08:30 Trade Balance – consensus -$47.5B, prior -$48.7B
10:00 Wholesale Inventories – consensus 0.3%, prior 0.3%
11:00 Fed buying $1b-$1.5b TIPS in 7 to 30-year range
1:00 Treasury selling $16b 30-year bonds
JPY Bank of Japan Rate Decision
01:30 AUD Employment Change
01:30 CNY CPI
01:30 CNY PPI
05:00 JPY Consumer Confidence
05:30 CNY Industrial Production
05:30 CNY Retail Sales
12:15 CAD Housing Starts

Kohl’s (KSS) EPS 96c
Advance Auto Parts (AAP) EPS $1.40
Fusion-IO (FIO) EPS 4c
Nordstrom (JWM) EPS 74c

Oil inventories dropped 3.7 million barrels. Last week they dropped 6.5 million. On Thursday we will get the trade deficit and initial claims.




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: