Hi bobby, thought I would drop in what our 'Market Dr.' has to say...
Markets @ a Glance October 11, 1999
US employment data bewildered market players last Friday as initial glances at a declining non-farm payroll number may have provided a euphoric bull move to prices in the Fixed Income sector. However, after taking a closer look at the more core inflation driver of wage increases, enthusiasm for higher Bond prices quickly dissipated. What's the interpretation ? No doubt mixed, but probably weighs more towards a bearish scenario for Bonds. However, given the lack of any major upside move in yields, it became clear that the path of least resistance for Stocks was up.
Stocks
The Big three posted impressive gains on Friday of about 1% for the Dow, S&P and NASDAQ. More importantly however, the Equity sector seems to be slowly trading itself out of a pessimistic tone. In fact, the Tech sector is playing with historic levels and if it can build some value above the 2890 area, things could be back to full bull for the old NASDAQ. Many of the Internet leaders have come back to life (Yahoo, AOL, Amazon) in the past week or so.
The Dow and S&P are a bit more mixed and appear to be re-entering their 4-5 month trading range.
Near term Dow levels reside at 10,700 (near term technical objective) and 10,600 near term support.
Bearish tone appears to be abating but be careful of the situation in the Fixed Income sector. Higher yields could re-start negative tones for Stocks.
Bonds
Given the confusing US jobs report, the Bond market didn't manage to make much progress in either direction. Yields on the 30-Year did creep about another basis point towards the 6.25% resistance level.
Near term range looks to be about 6.10% to just above 6.25%. No major market moving data until later in the week, (Retail Sales and PPI). Long term technicals point to higher yields.
Crude
A more positive supply situation took more steam out of Crude as downside pressure took out near term support at $22. Near term downside objectives have been achieved and next support at $20.
Gold
Gold gave back a sliver on Friday as the commodity appears to be building some value near the upside resistance in the high 320's. Given the more stable situation in peripheral markets (e.g. Currencies, Stocks), Gold is performing pretty well, having maintained prices near the top of the recent rally. This market could entail some more two way value building for the near term.
THE MARKET Dr.
indextrade.com |
