17 March 2009 - BMO
Posted on 03.17.09 7:59PM under Daily Market Analysis
Briefing.com - Monday March 16 2009 @ 16:47 ET AMC Daily Sector Wrap : Participants Turn as Stocks Seem Overbought Leading up to the opening bell, financial stocks had surged almost 40% from last week’s multiyear low. The sector showed continued strength in the early going and even drove the broader market higher, but with conditions looking overbought, participants decided to take some money out of the game. British banking giant Barclays (BCS 5.31, +0.89) spurred financial stocks higher across foreign indices when it stated it has had a strong start to the year, and it is shopping its iShares business, which could pad its balance sheet with new capital. Meanwhile, global financial giant HSBC (HBC 26.91, +0.93) indicated it does not need more capital. That proclamation followed a recent rights offering. With confidence building, diversified banks and financial services outfits Citigroup (C 2.33, +0.55), Bank of America (BAC 6.18, +0.42), and JPMorgan Chase (JPM 23.09, -0.66) were able to provide further support to the financial sector. Financial stocks were up 6.0% at their session high, carrying the broader market up as much as 2.4%. Despite what was shaping up to be another strong session of broad-based gains, sellers emerged in afternoon trading to push financial stocks into the red. With financials back under pressure, the broader market was unable to hold its gains. Financials finished the session with a 1.9% loss, while the stock market closed with a modest loss at its session lows. The downturn snapped the stock market’s four-session run of gains. Despite the move to take profits, participants continue to anticipate positive headlines. Reuters reports the Financial Accounting Standards Board proposed allowing companies more judgment in determining distressed markets for accounting purposes by the first-quarter reporting period. That could help boost mark-to-market values. Fed Chairman Bernanke stated in a weekend interview with 60 Minutes that the economy could recover by next year with support from lawmakers and the public. That wasn’t anything different than Bernanke has said before, but this time traders reacted more positively, suggesting the emergence of a more positive bias in the overall market. An improved tone has led participants to pick up beaten down stocks, but that has meant many are rotating out of the sectors that had held up against selling pressure during recent weeks. Particularly, tech stocks were sent markedly lower this session. Technology shares showed relative weakness throughout the entire session, and closed with a 1.7% loss. The weakness in large-cap tech stocks caused the Nasdaq to lag its counterparts since the opening bell. Energy stocks showed weakness early on, but managed to close with a 0.8% gain. That came as crude oil prices rebounded from early weakness to close pit trading modestly higher at $46.30 per barrel. Oil’s gyrations came after OPEC decided during its weekend meeting to leave production levels unchanged. Economic data was light this session. February industrial production declined 1.4%, which is essentially in-line with the consensus 1.3% decline. Capacity utilization dipped to 70.9% from 71.9%, as generally expected. The February report continues to reflect a weak demand environment that will ultimately drag on GDP. The Fed’s policy-setting Federal Open Market Committee begins its two-day meeting tomorrow. Since the FOMC is expected to leave the target lending rate at a range of 0.00% to 0.25%, most attention will be paid to the wording of Wednesday’s statement. |
Market Internals for Monday March 16 2009
Leading Sectors: Consumer Staples (+0.87%), Industrials (+1.35%), Energy (+0.81%), Materials (+1.32%), Utilities (+2.57%)
Leading Industries: Aluminum +6.82%, Trucking +4.92%, Railroads +4.74%, Forest Products +4.68%, Housewares & Specialties +4.67%, Multiline Insurance +4.68%, Fertilizers & Agricultural Chemicals +4.26%, Oil & Gas Equipment & Services +4.06%, Independent Power Producers & Energy Traders +3.97%, Air Freight & Logistics +3.93%
Lagging Sectors: Financials (-1.85%), Tech (-1.72%), Health Care (-1.22%), Consumer Discretionary (-1.82%), Telecom (-0.25%)
Lagging Industries: Real Estate Services -14.69%, Industrial REITs -14.40%, Retail REITs -10.06%, Photographic Products -9.56%, Residential REITs -8.40%, Specialized REITs -8.36%, Wireless Telecommunications Services -7.30%, Diversified REITs -7.13%, Office REITs -7.02%, Investment Banking & Brokerage -5.92%
NYSE:
Higher than avg volume @ 1831 vs. 1458 avg
Advancers outpacing Decliners : 1765/1309
New lows outpacing new highs : 7/66
NASDAQ:
Higher than avg volume @ 2163 vs. 2115 avg
Decliners outpacing Advancers : 1204/1507
New lows outpacing new highs : 7/35
Other Market Moving Factors:
• Financial stocks continue to fuel gains in broader market
• Barclays looks to divest ETF business, says it has made strong start to year; European banks trade higher, lifting overseas markets
• OPEC leaves production targets unchanged
Briefing.com - Monday March 16 2009 @ 16:52 ET AMC After-Hours Report : Alcoa Cuts Dividend, Warns of Q1 Loss Price level versus 4 pm ET: Financials fueled the market’s gains through the first half of the session, but late afternoon selling pressure sent the sector and the broader market to close in negative territory. The S&P 500 and Dow settled with slight losses, while the Nasdaq underperformed due to weakness in large-cap tech stocks. Five of the ten sectors posted a loss, led by financials (-1.9%) and consumer discretionary (-1.8%). Utilities (+2.6%) and industrials (+1.4%) outperformed. Futures are slightly higher in after hours trading. S&P 500 futures, at 753.50, are two points above fair value, while Nasdaq 100 futures, at 1150.50, are up by three points. |
U.S Markets - Tuesday March 17 2009 - BMO
TECHNICAL UPDATE
DOW JONES INDUSTRIAL AVERAGE (DJIND: CBOT) 7216.97, -7.01 (-0.10%)
NASDAQ COMPOSITE INDEX (COMB) (COMP.IDX: NASDAQ) 1404.02, -27.48 (-1.92%)
S&P 500 INDEX (SPX: CBOE) 753.89, -2.66 (-0.35%)
__________________________________________
Current Markets
Asian Markets Tuesday March 17 2009 @ Mar 17 6:53am:
HANG SENG -98.62 ( 12878.09 -0.76% )
NIKKEI 225 244.98 ( +7949.13 +3.18% )
KLSE 841.87 ( +0.99 +0.12% )
STI 1,559.03 ( -27.29 -1.72% )
Currencies Tuesday March 17 2009 @ Mar 17 6:53am:
U.S. Dollar vs Euro ( +1.2991 +0.14% ) 0.0018
U.S. Dollar vs Yen ( +0.0101 +0.45% ) 0.44
U.S. Dollar vs UK £ ( 1.41 -0.06% ) 0
Treasury Yields : 
2 Year Note 99.75% +0.04 • 5 Year Note 99.78125% +0.05
10 Year Note 98.25% 0 • 30 Year Note 95.375% +0.08
Gold (CMX ) April 09 ($US per Troy oz.) : 922.00 ( -8.10)
Light Crude (NYM ) April 09 ($US per bbl.) : 47.35 ( +1.10)
Earnings Highlights for Tuesday March 17 2009
CSIQ , CRYP , FDS , HNR , RTLX , SIRI , WCG , AIR , ADBE , DRI , GES
Events for Tuesday March 17 2009
08:30 Building Permits
08:30 Housing Starts
08:30 PPI
08:30 Core PPI
___________________________________________
Summary
"Alcoa slashes dividend in cost-cutting move" : http://money.cnn.com/2009/03/16/news…ion=2009031618
"Tooling up for stem cell stocks" : http://money.cnn.com/2009/03/16/maga…ion=2009031704
Woohoo guys…. remember Conrad raving on his Healthcare, Stem Cell insights? There you go…. 
For Conrad’s report on Healthcare http://www.patterntradertools.com/?p=627
"Bonus rage closes in on AIG" : http://money.cnn.com/2009/03/16/news…ion=2009031621
"Stocks headed for a flat open" : http://money.cnn.com/2009/03/17/mark…ion=2009031707
Ok here we are… flat today in the morning. Whether we end up or down depends much on news at 08:30. If news is bad and we go down big time ok so be it.. but if news is bad and we are still holding something says that i’m looking to a bullish April 09. As for now i’ll bet on an Up day, at least to test 7,330. 
Resistance levels @ 7,330 and 7,480
Support levels @ 7,080 and 6,950
Direction for Tuesday March 17 2009; ∆ Up
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