Tuesday, September 14, 2010

Daily Markets - Tuesday Market Analysis: US Dollar Weakens As Stock Markets Rally

Daily Markets - Tuesday Market Analysis: US Dollar Weakens As Stock Markets Rally


Tuesday Market Analysis: US Dollar Weakens As Stock Markets Rally

Posted: 14 Sep 2010 03:45 AM PDT

Equities:
Equity markets got an early boost from the better than expected economic data from China. Traders also responded kindly to the news regarding the forth coming tighter European banking regulations. The Nikkei 225 rose 82pts to 9,321. In the European session the FTSE 100 gained better than 1.15% to 5,565 while the Stoxx Europe 50 advanced 0.62% to 2,588. With little real economic data due out yesterday the positive sentiment stayed intact through the U.S session as the Dow Jones … [visit site to read more]


Hewlett-Packard Continues Spending Spree By Acquiring ArcSight

Posted: 14 Sep 2010 03:30 AM PDT

Hewlett-Packard Co. (NYSE:HPQ) yesterday (Monday) took another step toward becoming a more diverse software-based company by agreeing to buy ArcSight Inc. (NASDAQ:ARST) for about $1.5 billion in cash.

Palo Alto, California-based H-P will pay ArcSight investors $43.50 a share, a 24% premium over the stock’s closing price on Sept. 10. ArcSight makes security software to help companies identify suspicious activity on their corporate networks.

The deal is the latest in a string of acquisitions … [visit site to read more]


Forex Trading: USD/JPY Hits New 15-year Low

Posted: 14 Sep 2010 01:15 AM PDT

USD/JPY Hits New 15-year Low
The U.S. dollar fell to a fresh 15-year low against the Japanese yen ahead of a big leadership election in Japan. The greenback also sank against the euro during Tuesday’s trading.
Economic News
USD – Dollar Falls Ahead of Japan Leadership Vote
The U.S. currency was near a 1-month low against a basket of currencies after suffering its steepest fall against the euro in two months as rising investor risk appetite helped the European currency.

The dollar fell to a … [visit site to read more]


Using Stochastics In This Rangebound Market

Posted: 14 Sep 2010 01:01 AM PDT

Price volume action is showing weakness on this rally and there is a good chance we could see a third failure at the 200 day.  Many times, before bear markets ensue you can encounter three or four failed rallies above the 200 day before the primary bullish trend is reversed. Markets take time to transition from a bull to a bear market. Bullish mania wears down as repetitive failures shows a market that is losing confidence.  On each subsequent rally the amount of bargain hunters … [visit site to read more]


Crude Oil Holds Gains Despite Pipeline Repair, Gold Trend Hangs In The Balance

Posted: 13 Sep 2010 11:51 PM PDT

Commodities – Energy
Crude Oil Holds Gains Despite Pipeline Repair
Crude Oil (WTI) – $77.19 // $0.00 // 0.00%
Commentary: Crude oil rose $0.74, or 0.97%, or Monday, benefiting from the same growth optimism and supply worries that boosted the commodity late last week. Oil settled off the day's highs, however, after news came out that Enbridge had repaired the leak in its crude oil pipeline. There is no word on when flows will resume through the pipeline, but it does not look like there will … [visit site to read more]


Crude Oil Holds Gains Despite Pipeline Repair, Gold Poised To Breakout Or Breakdown

Posted: 13 Sep 2010 11:51 PM PDT

Commodities – Energy
Crude Oil Holds Gains Despite Pipeline Repair
Crude Oil (WTI) – $77.19 // $0.00 // 0.00%
Commentary: Crude oil rose $0.74, or 0.97%, or Monday, benefiting from the same growth optimism and supply worries that boosted the commodity late last week. Oil settled off the day's highs, however, after news came out that Enbridge had repaired the leak in its crude oil pipeline. There is no word on when flows will resume through the pipeline, but it does not look like there will … [visit site to read more]


Bear Of The Day: BB&T Corporation (BBT)

Posted: 13 Sep 2010 11:05 PM PDT

We are downgrading our recommendation on BB&T (NYSE:BBT) to Underperform based on concerns related to rising non-interest expenses and deteriorating credit quality.
Higher non-interest expense was among the negatives in BB&T’s second quarter earnings report. Current challenges related to the housing market and pressure on the credit quality raise concerns on near-term growth.
BB&T has significant exposure in residential mortgage loans, direct retail residential loans, sales finance and … [visit site to read more]


Bull Of The Day: Autoliv, Inc. (ALV)

Posted: 13 Sep 2010 11:05 PM PDT

Autoliv (NYSE:ALV) maintains a stable market share globally, supported by the increasing importance of vehicle safety needs. Furthermore, the company aims to tap huge market potential by expanding into low-cost countries.
The company’s balance sheet is solid with low debt and healthy cash flow. In the most recent quarter, the company’s profit significantly improved from the year-ago level, and far exceeded the Zacks Consensus Estimate by $0.37 per share.
We have, therefore, upgraded the … [visit site to read more]


Momentum Stock: The Hain Celestial Group, Inc.

Posted: 13 Sep 2010 11:05 PM PDT

The Hain Celestial Group, Inc. (NASDAQ:HAIN) recently hit a new multi-year high just shy of $25 after reporting a solid Q2 earnings surprise of 8% in late August. With estimates on the rise and the valuation picture in check, HAIN offers a nice helping of upward momentum.
Company Description
The Hain Celestial Group, Inc, together with its subsidiaries, distributes and sells natural and organic food and personal care products in the United States and Internationally. The company was founded in 1993 … [visit site to read more]


Growth & Income Stock: Aptargroup Inc

Posted: 13 Sep 2010 11:05 PM PDT

Aptargroup (NYSE:ATR) recently announced second quarter earnings per share growth of 63%. It was 4 cents above the Zacks Consensus Estimate, and its seventh consecutive positive surprise.
Aptargroup supplies pumps, dispensers, closures, and valves for a variety of markets around the globe. Over half of the company’s sales come from Europe.
Aptargroup is based in Crystal Lake, Illinois and has a market cap of $2.97 billion.
Strong Sales & Income Growth
Aptargroup reported second quarter … [visit site to read more]


Aggressive Growth Stock: TRW Automotive Group

Posted: 13 Sep 2010 11:05 PM PDT

TRW Automotive (NYSE:TRW) estimates are surging, surpassing pre-recession levels after the latest earnings surprise.
Company Description
TRW Automotive is an auto supplier offering braking, steering, suspension, safety and driver assisting systems and other products.
Big Surprise
On Aug 4 TRW Automotive reported quarterly results that showed a 34% jump in sales, to $3.7 billion. Net earnings came in at $221 million, or $1.73 per share. The company improved drastically from the $8 million, 8 cents … [visit site to read more]


US Stock Markets Now Trading Just Above Overbought Levels

Posted: 13 Sep 2010 08:45 PM PDT

After four consecutive up days in the market, its once again time to check if the markets have reached overbought levels. And that, of course, means it’s time to turn to the trusty ol’ McClellan Oscillator for guidance. Attached below are the charts of Nasdaq and NYSE McClellan Oscillators with the overbought levels marked on them.

As we can see from above, the markets are trading just above overbought levels after Monday’s action. Now that does not mean that we head straight down … [visit site to read more]


More Important Resistance Levels Ahead For US Stock Markets

Posted: 13 Sep 2010 08:20 PM PDT

A day dominated by the bulls where all the major indices managed to break important resistance levels, making it four consecutive up days for the markets. However, even more important resistance levels block the way right ahead as we see in the charts below. As always, let’s start with the S&P.

S&P – Managed to break through both the MA(200) and more importantly, 1115 today which should become the immediate support. Coming up right ahead is 1130, the multi-month resistance … [visit site to read more]


The Fatal Political Obsession With Homeownerhip

Posted: 13 Sep 2010 08:00 PM PDT

From a letter sent to President Bush by Barney Frank, Nancy Pelosi, Maxine Waters and 73 other Congressional Democrats on June 28, 2004:

“We urge you to reconsider your Administration’s criticisms of the housing-related government sponsored enterprises (the GSEs) and instead work with Congress to strengthen the mission and oversight of the GSEs. We write as members of the House of Representatives who continually press the GSEs to do more in affordable housing.

Until recently, we have been … [visit site to read more]


Bank Stocks Boosted By Investor Optimism

Posted: 13 Sep 2010 07:55 PM PDT

Global regulators on Sunday agreed on new banking capital requirements – known as Basel III – that were much less severe than expected, boosting global financial stocks as investors were optimistic about banks’ ability to comply.

The Basel Committee on Banking Supervision agreed on new rules that will more than triple capital requirements to give banks a bigger cushion against losses. Banks will have to raise the amount of common equity they hold to 7% of assets, up from 2%.

While … [visit site to read more]


US Stock Market Rally Has Further To Go In The Short And Intermediate Term

Posted: 13 Sep 2010 07:43 PM PDT

In the last BullBear Weekend Report I called for an important bottom and a sharp rally and we did get just that. We are now long from SPX 1048. Technicals indicate that the rally has further to go both in the short and intermediate terms. There are significant indications that a long term bottom has been put in place and that at a minimum a revisit of the April highs is possible. So far there are little if any indications that a bear trend will resume any time soon.

I am sure that … [visit site to read more]


China Booms As Farmers Get Access To Credit

Posted: 13 Sep 2010 07:23 PM PDT

The second stage to the booming Chinese economy is about to begin.

And many of the country’s farmers, with little more than shacks and eight kids to feed are going to be the driving force behind it.

No longer will the Chinese economy be solely reliant on cheap manufacturing of DVD player’s and mobile phones.

Now, these farmers will be able to step out of poverty and embrace the benefits of consumerism, like many of their city living countrymen.

‘Chinese farmers are possibly about to … [visit site to read more]


Singapore Stock Market Update For Tuesday 14 September

Posted: 13 Sep 2010 06:30 PM PDT

Morning Highlights

Singapore shares started on a mixed note STI losing 1.14 points to open at 3065.67.
Watch Out For Economic News Today:

U.S August Advance Retail Sales

U.S IBD/TIPP September Economic Optimism 

Corporate Announcements:

NOL announced its operating performance for the 4 weeks from 24th July to 20th Aug. Its container shipping volumes increased 13% over the same period last year.

Sembcorp Marine’s subsidiary has secured major upgrading and repair contracts worth … [visit site to read more]


Beyond The Numbers

Posted: 13 Sep 2010 05:31 PM PDT

Throughout the financial crisis, many mainstream experts have directed their attentions toward “the numbers.” They have focused on data points, monthly statistics, long-term averages, cyclical swings, and rates of change of various trends.
However, their insistence on a quantitative approach has often left them blind to other realities. By limiting their perspective to what they can count and collate, they have missed a secular mood swing, broadscale adjustments in attitudes and … [visit site to read more]


Strong Growth And Sentiment Cues Rally Oil, Keep Gold Stationary

Posted: 13 Sep 2010 05:08 PM PDT

North American Commodity Update
Commodities – Energy
Supply Disruptions and Investor Confidence Carry Oil to a Fresh Monthly High
Crude Oil (LS Nymex) – $77.19 // $0.74 // 0.97%
There was no doubting the improved level of investor sentiment Friday which drove equities, commodities and bond yields higher in equal measure. For oil, the taste for risk was obvious as the US-based crude futures contracts put in for very blatant follow through on this past Friday's remarkable breakout from … [visit site to read more]


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