A Few Thoughts on Tuesday’s Market: In looking at the charts of the various indices I track, I noticed a couple of things. The 1st being that several of the various sector indices appear to be looking as if they could easily turn lower. Additionally the Gold/Silver indices continue to look weak. The second thing that I noticed is that a couple of the high tech indices appear to have gone parabolic with their chart patterns. In effect, they sort of look similar to the chart of Apple, Inc. ‘AAPL’ over the course of the last several months. The NASDAQ 100 has also been effected by this as well. This is a result of the way in which these indices are designed. They are capitalization weighted indices, which means that the ratio, or weighting, of the stocks within the index is based upon the market capitalization of the companies that comprise the index. I have never been in favor of this form of index construction. I think it has several drawbacks, some of which can have very devastating consequences……
Tag Archive for Gold
Sterling Market Commentary for Monday Feburary 13th, 2012
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In looking at the charts from Friday’s market I noticed that a pretty high number of the various sector indices I track appear to be turning negative. Also in looking at the stocks with the highest trading volume, the majority of those that are not moving sideways look weak with negative chart patterns. History has taught me that this generally precedes a turn lower by the market. My thoughts are that the recent move higher may be beginning to run out of steam. With respect to the Greek Financial Crisis, I just do not see the Greek people easily accepting the mandated reforms. I do not think the Greek Financial Crisis is over yet……..
Sterling Market Commentary for Friday February 3rd, 2012
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A Few Thoughts Before the Open: One word to describe the recent market, “DULL!” Granted it has been a slow, steady upward trend, and it looks like that trend could continue; or it could reverse course at any point in time. However, from my standpoint it is somewhat tough to find any new entry points on either the long or short side that I feel comfortable with. I will take a more in depth look at the market this weekend and see what I can find…………..
Sterling Market Commentary for Thursday February 2nd, 2012
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The overall market moved moderately higher on Wednesday in a broad based move that saw almost every sector indices I track move higher on the day. The strongest sectors on the day were the High Tech, Biotech, Broker/Dealers, Airlines, Banking, Cyclicals. Insurance and Chemicals. Not a single stock index I track moved lower on the day. Oil was lower by $0.87 to $97.61 per barrel, and Gold was higher by $9.30 to $1,747.10 per ounce. In the grain market, Wheat was higher by $0.0882 to $6.742 per bushel, and Corn was higher by $0.030 to $6.420 per bushel, and Soybeans were higher by $0.162 to $12.152 per bushel……..
Sterling Market Commentary for Wednesday February 1st, 2012
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The overall market finished Tuesday mixed with the S&P 500 and the Dow Jones Industrial Average finishing slightly lower, while the NASDAQ finished the day slightly higher. There was strength in the Transports, Utilities, Banking, Airlines, Broker/Dealers, High Tech, Oil & Gas, Biotech, and Healthcare indices. There was weakness in the Gold/Silver, Commodities, Cyclicals, Consumer, Retailers, Insurance, and Oil Services indices. Oil was lower by $0.30 to $98.48 per barrel, and Gold was higher by $6.80 to $1,737.80 per ounce. In the grain markets, Wheat was higher by $0.212 to $6.660 per bushel, and Corn was higher by $0.074 to $6.452 per bushel, while Soybeans were higher by $0.36 to $11.990 per bushel.
Sterling Market Commentary for Tuesday January 31st, 2012
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Early futures are once again higher as the politicians in Europe talk about solving problems without providing any real solution. People really need to be paying attention to the substance of these stories and not just the headlines. In looking at the charts from yesterday’s trading activity, I noticed that with the exception of the high tech indices the rest of the various indices I track appear to be….
Sterling Market Commentary for Friday January 27th, 2012
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The overall market is rather dull right now; something I find rather interesting considering the Fed’s recent announcement of prolonged ultra-low interest rates and what I consider to be rather good corporate earnings announcements. I take this to be a sign that investors are not really to enthused about the prospects for the world economy for 2012. While it is tempting to call for a market pullback, there is an old saying about never short a dull market. While my 1st Rule of Trends is that a trend remains in place until it is broken; my 2nd Rule of Trends is ……….
Sterling Market Commentary for Thursday January 26th, 2012
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I will admit I am just not enthused about much of anything this morning. I am deeply disappointed by the negative campaigning by the Republican candidates, I think Obama’s election year politics are going to be deeply destructive, and the Bernanke’s Fed is creating a bond bubble and in the process enabling disasterous policies that could make the 2008 financial crisis look like a warmup event. Additionally I do not see the European financial crisis as really being solved, or anything close to it. I guess I am just in one those moods.
Sterling Market Commentary for Wednesday January 25th, 2012
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A Few Thoughts on Wednesday’s Market: In looking at the charts from yesterday’s trading activity I noticed that it looks like the NASDAQ 100 ‘NDX’ has entered an area of upside resistance that could be tough to get through. Additionally the very vast majority of the sector indices I track are not confirming the move higher by the Dow Jones Industrial Average. Granted I expect the NASDAQ to be higher today due to the incredible earnings by Apple, Inc. ‘AAPL’. However…………….
Sterling Market Commentary for January 24th, 2012
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It should be noted that on Friday the Dow Jones Industrial Average closed Friday at 12,720.48 Last summer the Dow closed at 12,724.41 on July 21st, and at 12,719.49 on July 7th. This is significant because if we see the Dow Jones Industrial Average moves back lower from these levels, then we will effectively have put in place a “triple top,” which should be considered a significant point of upside resistance. It should also be noted that this move higher has not been confirmed by the either the……………………