Morning Update: 10/16/2012


Week Starts Off With A Bang

The stock market indices started off the week with a bang, and although they gapped up and then pulled back, support did hold. That prompted a mid morning rally that got up to resistance, but twice midday they failed there, and pulled back, though in an orderly 3-wave, corrective fashion, and held the late morning pull-back lows. When that occurred, they took off again in the afternoon, broke out above key 3-day resistance at 2735 NDX, and ran up to 2743 area. The S&P 500 jumped late in the day from 1434 to 1441, and then backed off finally at the close.

Net on the day, the Dow was up 95.38 at 13,424.23, the S&P 500 was up 11.54 at 1440.13, and the Nasdaq 100 close up 19.73 at 1739.87.

Advance-declines were 2 to 1 positive on New York Stock Exchange, and almost 3 to 1 positive on Nasdaq. Up/down volume was nearly 3 to 1 positive on New York, with total volume of just under 600 million shares. Nasdaq traded over 1.5 billion, and had a 3 to 1 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were up early, pulled back sharply to test support, but held, and then ran up to resistance and also held. Backing off by midafternoon, they held support, came on and broke out, and closed near the highs for the day going away.

That was an excellent start to the week. Let’s see how tomorrow goes.

Good Trading!




Tuesday, October 16

08:30 Consumer Price Index YoY – consensus 1.9%, prior 1.7%
08:30 CPI Ex Food & Energy – consensus 2.0%, prior 1.9%
08:30 CPI NSA – consensus 231.360, prior 230.379
09:00 Total Net TIC Flows – prior $73.7B
09:00 Net Long-term TIC Flows – prior $67.0B
09:15 Industrial Production – consensus 0.2%, prior -1.2%
09:15 Capacity Utilization – consensus 78.3%, prior 78.2%
10:00 NAHB Housing Market Index – consensus 41, prior 40
11:00 Fed purchasing $4.5b-5.5b notes in 8 to 10-year range
11:30 US selling $25b in 52-week bills, 4-week bills
08:30 GBP PPI
08:30 GBP CPI
09:00 EUR Eurozone CPI
09:00 EUR German ZEW Sentiment
11:00 EFSF to sell 6-month bills
12:00 Greece to sell 91-day bills

Coca-Cola (KO) EPS 50c
PNC Financial (PNC) EPS $1.66
Mattel (MAT) EPS 99c
Goldman Sachs (GS) EPS $2.28
Johnson and Johnson (JNJ) EPS $1.21
WW Grainger (GWW) EPS $2.89
Cree (CREE) EPS 26c
Apollo (APOL) EPS 49c
Intel (INTC) EPS 50c
State Street (STT) 96c

Retail sales rose 1.1%, better than the expected 0.7%. The Empire State mfg. index was minus 6.16, worse than the expected minus 3.0. On Tuesday we will get the CPI, Industrial production and housing market index.


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