Monday, January 3, 2011

DailyMarkets.com - January 2011 Outlook For The U.S. Stock Market

DailyMarkets.com - January 2011 Outlook For The U.S. Stock Market

January 2011 Outlook For The U.S. Stock Market

Posted: 03 Jan 2011 03:35 AM PST

One thing is for sure: the S&P 500 ($SPX) finished 2010 on a bullish tear, remaining highly resilient to the end. However, given the January profile of the last three years, we could see a sizeable drop to begin 2011, as profit-taking hits its full stride. Here's why..

Average of 6.1%

The last three years, the S&P 500 has lost an average of 6.1% in the month of January, losing 6.1% in 2008, 8.6% in 2009, and 3.7% in 2010. Could we see the same type of behavior in January … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/CHF Rebounds From Record Low On Short Covering

Posted: 03 Jan 2011 03:08 AM PST

Forex Pros – The U.S. dollar rebounded from a record low against the Swiss franc on Monday, on the first trading day of 2011, as the greenback was supported by demand for dollars to cover short positions remaining from last year.

USD/CHF hit 0.9383 during European morning trade, the daily high; the pair subsequently consolidated at 0.9362, gaining 0.17%.

The pair was likely to find support at 0.9299, last Friday's low and an all-time low and resistance at 0.9459, the high of December … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – Dollar Begins 2011 Broadly Higher Vs. Rivals

Posted: 03 Jan 2011 02:34 AM PST

Forex Pros – The U.S. dollar was broadly higher against its major counterparts on Monday, on the first trading day of 2011 as demand for dollars to cover short positions left over from last year helped the support the U.S. currency.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.60% to hit 1.3306.

Earlier Monday, data showed that manufacturing activity in the euro zone increased more than initially forecast in December, rising to an 8-month … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – New Zealand Dollar Retreats As Greenback Rallies

Posted: 03 Jan 2011 02:22 AM PST

Forex Pros – New Zealand's dollar opened lower against its U.S. counterpart on the first trading day of the New Year, amid thin trade volumes as major international markets remained closed.

NZD/USD hit 0.7739 during European morning trade, a daily low; the pair subsequently consolidated at 0.7772, shedding 0.35%.

The pair was likely to find support at 0.7721, the low of December 31 and short-term resistance at 0.7813, the high of the same day.

The greenback rallied after a string of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

European Stocks Broadly Higher Amid Thin Trade; DAX Up 1.57%

Posted: 03 Jan 2011 02:09 AM PST

Forex Pros – European stocks posted sharp gains in the first trading session of the year amid low trade volume on Monday as markets in London remained closed for the New Year's holiday. 

During European morning trade, the EURO STOXX 50 surged 1.37%; France's CAC 40 soared 2.14%; while Germany’s DAX jumped 1.57%.

Shares in the automaker sector, which was the best-performing sector in Europe in 2010, led markets higher.

Luxury automaker Porsche saw shares soar 11.87% after a U.S. … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – AUD/USD Eases Back From 28-year High

Posted: 03 Jan 2011 02:01 AM PST

Forex Pros – The Australian dollar dipped to a daily low against its U.S. counterpart on Monday, in the first trading day of 2011, as trade remained thin with major markets all closed on account of post New Year holidays.

AUD/USD hit 1.018 during European morning trade, the daily low; the pair subsequently consolidated at 1.0194, shedding 0.34%.

The pair was likely to find support at 1.0087, the low of December 29 and resistance at 1.0255, the high of December 31 and a 28-year high.

The … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex Trading: Eurozone Final PMI

Posted: 03 Jan 2011 01:21 AM PST

EZ Final PMI came in at 57.1, stronger than the 56.9 expected.
Eur/Usd made a push higher on heels of release trading up about 20 points to 1.3315. The pair currently resides at … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Stocks Markets – Anticipating Economic Growth?

Posted: 03 Jan 2011 01:18 AM PST

This article is a combination and update of two posts published separately a few weeks ago.
Stock markets have been heading north over the past few weeks while market commentators question the health of the world economy and especially the situation in the U.S. and China. But who is right and who is wrong? This very question prompted me to look at the ability of stock markets to anticipate the fortunes of the underlying economies.
The methodology I applied was to calculate Monthly Smoothed … [visit site to read more] or compare Best Credit Cards and Best CD Rates

S&P Index From 1825 To 2010

Posted: 03 Jan 2011 01:16 AM PST

The graph below is an interesting depiction of the S&P Index's annual returns since 1825. Of the 186 years 70% were positive and 30% negative. The Index's total return for 2010 was +15.06%. Although interesting, the chart offers little guidance as to where the 2011 block will be placed.
Click here or on the image below for a larger chart.

Sources: William N. Goetzmann, Roger G. Ibbotson and Liang Peng, A new historical database for the NYSE 1815 to 1925: Performance and … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Political Risks Surrounding Asia

Posted: 03 Jan 2011 01:15 AM PST

Fraser Howie, managing director of CLSA Singapore, outlines the geopolitical risks to be aware of this year. He tells CNBC's Emily Chan that the impact of China's growing prowess on the balance of power in Asia is something to watch … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Gartman’s Top Three Trades For 2011

Posted: 03 Jan 2011 01:15 AM PST

Dennis Gartman, writer of "The Gartman Letter", tells CNBC he wants to own agriculture, "strong stuff" and regional banks in the … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Take Guidance From Market Axioms

Posted: 03 Jan 2011 01:14 AM PST

As we approach the first trading day of 2011, it will be time well spent to review Arthur Huprich's list of investment rules. Art is Senior Vice President and Senior Market Technician of Raymond James Equity Research. The list comes courtesy of Barry Ritholtz, writer of The Big Picture blog.
• Commandment #1: "Thou Shall Not Trade Against the Trend."
• Portfolios heavy with underperforming stocks rarely outperform the stock market!
• There is nothing new on Wall Street. There … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Gold Likely To Surpass $1,650 This Year

Posted: 03 Jan 2011 01:13 AM PST

Spot gold prices will rise to at least $1,650 in 2011, believes Juerg Kiener, CEO at Swiss Asia Capital. He explains his bullish outlook to guest host Tai Hui of Standard Chartered Bank and CNBC's Martin Soong and Sri … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Euro Zone Manufacturing PMI Rises More-than-expected

Posted: 03 Jan 2011 01:11 AM PST

Forex Pros – Manufacturing activity in the euro zone increased more than initially forecast in December, rising to an 8-month high, industry data showed on Monday.

In a report, market research group Markit said that its euro zone manufacturing PMI rose to a seasonally adjusted 57.1 in December, compared to a preliminary reading of 56.8.

Analysts had expected the manufacturing PMI to rise to 56.9 in December.

On the index, a reading above 50.0 indicates industry expansion, below indicates … [visit site to read more] or compare Best Credit Cards and Best CD Rates

How To Trade Gold, Stocks And ETFs In 2011

Posted: 03 Jan 2011 01:04 AM PST

I hope everyone had a great holiday and new years!

It's time to reset our profit counter to zero and start looking for new profitable trades along with managing our current open positions on our small cap stocks which we continue to hold with gains of 66%, 35% and 10%.

Last year was a tough one as the stock market chopped around in a very large range giving off buy and sell signals every week and some times every other day…

Those who follow me or trade with me through my trading … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Recession Risk Remains In 2011, Says Nightingale

Posted: 03 Jan 2011 01:00 AM PST

There is a risk of another recession in 2011 and protectionism could cause major problems, Roger Nightingale, strategist at Pointon York, told … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Swiss SVME PMI Falls Unexpectedly In December

Posted: 03 Jan 2011 12:35 AM PST

Forex Pros – Manufacturing activity in Switzerland declined unexpectedly in December, industry data showed on Monday.

In a report, the Swiss SVME purchasing managers’ association and Credit Suisse said that its purchasing managers' index fell to a seasonally adjusted 59.6 in December, after rising to 61.8 in November.

Analysts had expected the index to rise to 62.1 in December.

On the index, a reading above 50.0 indicates expansion, below indicates contraction.

Following the release of … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Laugh Out Loud: If 2011 Is Anything Like …

Posted: 03 Jan 2011 12:30 AM PST

Forex – Pound Slips Against Broadly Stronger Dollar

Posted: 03 Jan 2011 12:11 AM PST

Forex Pros – The pound was down against the broadly stronger U.S. dollar in the first trading session of 2011 on Monday, amid hopes that the economic recovery in the U.S. will drive global growth as expansion in China moderates.

GBP/USD hit 1.5501 during late Asian trade, the daily low; the pair subsequently consolidated at 1.5503, shedding 0.66%.

Cable was likely to find support at 1.5418, the low of December 31 and resistance at 1.5663, the high of December 31.

The dollar strengthened … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Asia Stocks Advance In Thin Trade; Nikkei Closed For Holiday

Posted: 02 Jan 2011 11:52 PM PST

Forex Pros – Asian stocks edged higher amid thin trade in the first trading session of 2011 as markets in Japan, Australia, New Zealand and mainland China remained closed for the New Year’s holiday.

During late Asian trade, Hong Kong’s Hang Seng Index jumped 1.75%, South Korea’s Kospi Composite rose 0.93%, while Japan's Nikkei 225 Index was closed.

The Hang Seng's gains came as shares in the energy sector performed strongly as crude oil prices hovered near a 26-month high.

Shares in … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/USD Tumbles On Optimistic U.S. Growth Outlook

Posted: 02 Jan 2011 11:44 PM PST

Forex Pros – The euro was down against the U.S. dollar on Monday in the first trading session of 2011, as optimism that the U.S. economic recovery is gathering pace boosted the dollar.

EUR/USD hit 1.3263 during late Asian trade, the pair's lowest since December 30; the pair subsequently consolidated at 1.3268, tumbling 0.88%.

The pair was likely to find support at 1.3082, the low of December 29 and resistance at 1.3423, the high of December 31.

The dollar strengthened amid optimism that … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Bear Of The Day: FTI Consulting (FCN)

Posted: 02 Jan 2011 11:05 PM PST

FTI Consulting’s (NYSE:FCN) third quarter 2010 earnings were below the Zacks Consensus Estimate. The company’s corporate/restructuring segment remains a drag on its growth due to softer trend in restructuring activities and a slowdown in new cases.
The company is also experiencing a tepid pace of recovery in the Merger & Acquisition markets. Overall, the near-term visibility remains unclear, as demand environment for practices remains uncertain given the current market volatility and clients … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Growth & Income Stock: Banco De Chile

Posted: 02 Jan 2011 11:05 PM PST

For investors looking to capitalize on growth in the emerging markets, it can pay to think outside the BRIC – or Brazil, Russia, India and China. One red-hot destination often overlooked is Chile. This South American gem has been one of the best performing markets of 2010 due in large part to surging copper prices.
One company sure to capitalize on Chile’s continued economic growth is Banco de Chile (NYSE:BCH), the country’s largest bank.
The bank recently reported a 46% increase in net income … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Bull Of The Day: Equinix, Inc. (EQIX)

Posted: 02 Jan 2011 11:05 PM PST

As a leading provider of co-location services, Equinix Inc. (NASDAQ:EQIX) is well positioned in the market. The company delivered decent third quarter numbers and provided encouraging guidance for the fourth quarter and fiscal 2010.
We see a steady increase in the client base and strategic acquisitions that could enhance its revenue potential and expand its geographic reach. Though increased competition, European exposure, industry consolidation, and a long sales cycle will remain causes for … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Aggressive Growth Stock: UFP Technologies

Posted: 02 Jan 2011 11:05 PM PST

UFP Technologies, Inc. (NASDAQ:UFPT) beat expectations yet again last quarter, setting a company sales record. Estimates are on the rise and are projecting solid growth rates.
In addition, this Zacks #1 Rank (Strong Buy) is trading with attractive valuations.
Company Description
UFP Technologies makes protective packaging of fabricated foams, plastics and other materials. Customers are in the medical, auto, electronics and other markets.
Estimates Even Higher
UFP Tech was featured back in early … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/USD Down During The Asian Session

Posted: 02 Jan 2011 10:40 PM PST

Forex Pros – The Euro was lower against the U.S. Dollar on Monday.

EUR/USD was trading at 1.3301, down 0.65% at time of writing.

The pair was likely to find support at 1.3085, Wednesday's low, and resistance at 1.3424, Friday's high.

Meanwhile, the Euro was down against the British Pound and the Japanese Yen, with EUR/GBP shedding 0.25% to hit 0.8554 and EUR/JPY falling 0.49% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – GBP/USD Down During The Asian Session

Posted: 02 Jan 2011 10:00 PM PST

Forex Pros – The British Pound was lower against the U.S. Dollar on Monday.

GBP/USD was trading at 1.5547, down 0.41% at time of writing.

The pair was likely to find support at 1.5353, Wednesday's low, and resistance at 1.5664, Friday's high.

Meanwhile, the British Pound was up against the Euro and down against the Japanese Yen, with EUR/GBP shedding 0.26% to hit 0.8554 and GBP/JPY falling 0.29% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Crude Oil Grinds Higher On Outlook, Gold Edges Lower After 30% Gain In 2010

Posted: 02 Jan 2011 09:42 PM PST

Commodities – Energy
Crude Oil Grinds Higher on Outlook
Crude Oil (WTI) – $91.71 // $0.33 // 0.36%
Commentary: Crude oil is kicking off the new year on a positive note, with WTI rising close to $92 and Brent surpassing $95 in overnight trade. Loose monetary conditions and a strong economic outlook remain the two bullish underpinnings of crude. Prices will likely gravitate higher as long as news flow stays positive. We would wait for the inevitable correction, however, before initiating fresh … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/GBP Down During The Asian Session

Posted: 02 Jan 2011 09:35 PM PST

Forex Pros – The Euro was lower against the British Pound on Monday.

EUR/GBP was trading at 0.8550, down 0.30% at time of writing.

The pair was likely to find support at 0.8503, Wednesday's low, and resistance at 0.8648, Friday's high.

Meanwhile, the Euro was down against the U.S. Dollar and the Japanese Yen, with EUR/USD shedding 0.67% to hit 1.3298 and EUR/JPY falling 0.51% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

The Economy Glass Is Getting Half Full

Posted: 02 Jan 2011 09:24 PM PST

My needle has moved to the right on my pessimism-optimism scale and I'm not sure why. It has a lot to do with the recent performance of the stock market, a pretty good measure of sentiment as well as one of the better leading indicators of real economic activity. I don't have much more than a hunch and a hope, but I now expect real GDP growth to exceed four percent in 2011 and 2012 and don't really see why it couldn't exceed five percent.
This renewed growth will have to happen without … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/CHF Up During The Asian Session

Posted: 02 Jan 2011 09:00 PM PST

Forex Pros – The U.S. Dollar was higher against the Swiss Franc on Monday.

USD/CHF was trading at 0.9353, up 0.06% at time of writing.

The pair was likely to find support at 0.9301, Friday's low, and resistance at 0.9534, Wednesday's high.

Meanwhile, the U.S. Dollar was up against the Euro and the Japanese Yen, with EUR/USD shedding 0.69% to hit 1.3296 and USD/JPY rising 0.11% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/CAD Down During The Asian Session

Posted: 02 Jan 2011 08:25 PM PST

Forex Pros – The U.S. Dollar was lower against the Canadian Dollar on Monday.

USD/CAD was trading at 0.9926, down 0.56% at time of writing.

The pair was likely to find support at 0.9925, today's low, and resistance at 1.0055, Wednesday's high.

Meanwhile, the U.S. Dollar was up against the Euro and the British Pound, with EUR/USD shedding 0.71% to hit 1.3293 and GBP/USD falling 0.44% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

5 Copper ETFs Poised For Growth In 2011

Posted: 02 Jan 2011 08:19 PM PST

In 2010, copper locked in a second consecutive annual gain of nearly 33 percent as demand remained elevated due to growth in emerging markets and a weak dollar.  As for the future of the industrial metal, copper's outlook remains rosy as a supply and demand imbalance is expected to take place providing positive price support to the Global X Copper Miners ETF (COPX), the iPath Dow Jones Copper Index ETN (JJC), the First Trust ISE Global Copper Index Fund (CU), the PowerShares DB … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/CHF Down During The Asian Session

Posted: 02 Jan 2011 07:55 PM PST

Forex Pros – The Euro was lower against the Swiss Franc on Monday.

EUR/CHF was trading at 1.2435, down 0.63% at time of writing.

The pair was likely to find support at 1.2404, Thursday's low, and resistance at 1.2572, Friday's high.

Meanwhile, the Euro was down against the U.S. Dollar and the Japanese Yen, with EUR/USD shedding 0.71% to hit 1.3293 and EUR/JPY falling 0.56% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – GBP/CHF Down During The Asian Session

Posted: 02 Jan 2011 07:15 PM PST

Forex Pros – The British Pound was lower against the Swiss Franc on Monday.

GBP/CHF was trading at 1.4537, down 0.37% at time of writing.

The pair was likely to find support at 1.4401, Thursday's low, and resistance at 1.4717, Wednesday's high.

Meanwhile, the British Pound was down against the U.S. Dollar and up against the Euro, with GBP/USD shedding 0.46% to hit 1.5538 and EUR/GBP falling 0.26% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

A Figment Of The Bulls’ Imagination

Posted: 02 Jan 2011 07:06 PM PST

Based on a recent survey of more than 2,400 hiring managers and human resource professionals across industries and company, CareerBuilder.com, the largest online employment website, is predicting a “healthier” employment picture this year. Here are a few of the key findings [italics mine]:
Full-time Hiring
Twenty-four percent of employers plan to hire full-time, permanent employees in 2011, up from 20 percent in 2010 and 14 percent in 2009. Seven percent plan to decrease headcount, an … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Non-OPEC Supply, OECD Demand Are Key As Oil Eyes $100

Posted: 02 Jan 2011 06:57 PM PST

After falling for two years in a row, oil demand rebounded sharply in 2010 to reach a new record high. At 87.4 million barrels per day, the year's demand rose by 2.4mmbbl/d, or 2.8%, according to figures from the International Energy Agency. That is the fastest growth since 2004.

Much of 2010's robust growth can be attributed to recovery from an especially dismal 2008 and 2009. The steep declines in consumption we saw in developed economies were partially reversed, though Europe put in yet … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex Technical Update – EUR/USD Develops Head And Shoulder Formation

Posted: 02 Jan 2011 06:55 PM PST

EUR/USD

1H and 15min: EUR/USD developed a head and shoulder to start the year. This is more clear in the 15-min chart, where the RSI also dipped below 30 reflecting a near-term bearish attempt. The RSI in the 1H chart also is breaking below 40, so the bullish attempt that started December 28th should be seeing a retracement.
Indeed, there is a retracement to the rally coming out of a rounded December bottom (seen in the 4H chart below).
Let's see where this current decline goes to. In … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – USD/JPY Up During The Asian Session

Posted: 02 Jan 2011 06:30 PM PST

Forex Pros – The U.S. Dollar was higher against the Japanese Yen on Monday.

USD/JPY was trading at 81.30, up 0.18% at time of writing.

The pair was likely to find support at 80.94, Monday's low, and resistance at 82.37, Wednesday's high.

Meanwhile, the U.S. Dollar was up against the Euro and the British Pound, with EUR/USD shedding 0.80% to hit 1.3281 and GBP/USD falling 0.45% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates

US Releases This Week: NFP, Manufacturing, Services,

Posted: 02 Jan 2011 06:04 PM PST

Start on Monday with Manufacturing PMI, Factory Orders
New Orders: pr. 56.6 (Nov), 58.9 (Oct)
Production: pr. 55.0 (Nov), 62.7 (Oct)
Employment: pr. 57.5 (Nov), 57.(Oct)
Prices: pr. 69.5 (Nov), 71.0 (Oct)

From Novemer's Release: "The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in … [visit site to read more] or compare Best Credit Cards and Best CD Rates

Forex – EUR/JPY Down During The Asian Session

Posted: 02 Jan 2011 05:35 PM PST

Forex Pros – The Euro was lower against the Japanese Yen on Monday.

EUR/JPY was trading at 108.15, down 0.46% at time of writing.

The pair was likely to find support at 107.62, Thursday's low, and resistance at 108.92, Thursday's high.

Meanwhile, the Euro was down against the U.S. Dollar and the British Pound, with EUR/USD shedding 0.67% to hit 1.3298 and EUR/GBP falling 0.26% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates
at

No comments:

Post a Comment