Wow the first day of June started with the DOW up over 100 points, only to close down over 100 points at the day. On June 2nd, the market steadily rose throughout the day to close at session highs, over 220 points. June 3rd, marked another seesaw day as the market jumped early in the session to 10,300, only to fall to a session low of 10,179 before steadily rising up to close above 10,255. The Market began moving higher late Thursday as news of a strong jobs reports were expected on Friday morning.
On Friday there were three major negative factors that hit the market and dictated the day’s trading activity.
- Things started out overseas when Hungary announced that it’s economy is in a crisis. This brought out concerns that Europe could be headed into a deeper economic crisis.
- The Euro dropped to new year of 1.1955 against the dollar.
- Jobs market data disappointed. The report showed 430,000 jobs were created in May, well short of 513,000 that Economists polled by Thomas Reuters had expected. And of the 430,000 jobs created, 411,000 were temporary census workers.
When the market opened on Friday, it quickly gaped down and steadily rose for the first hour of trading. As traders began to absorb the data, the market sell off began to accelerate throughout the day. The Dow closed at 9,931 (down 323 points), the lowest point since Feb 8th, 2010.
On a positive note, the S&P was able to gain support at 1064. The S&P continues to trade within the trading range of 1105 - 1060. Any move above 1105 is bullish and bearish if we break the 1060 range. For active traders, it’s important to keep a close watch on the ranges.
At this time due to the poor jobs report, we are bearish on the retail stocks. We are bullish on airline stocks as the group continues to hit new 52 week highs on a weekly basis. Some stocks to keep an eye on are:
- ALK - Alaska Airline
- CRM - Salesforce.com
- UNG - Natural Gas Fund
- VMW - VM Ware
Look to pick up some shares on any major pullbacks on the above stocks, they are poised to outperform the market if and when we recover from the current slump.
The trades I post here are strictly my own personal trades and does not serve as recommendation to buy or sell a stock. Always do your own research prior to purchasing or selling a stock. Jin’s Corner is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
Investors are getting extremely cautious as the stock market has not looked great the past two weeks. The Nasdaq, Dow and S&P 500 have all declined during the last two weeks of trading. This recent stock market dip the last couple of weeks is actually welcomed news as the market was way over heated and needed to pullback a little to build up momentum for the next leg up.
The next few weeks is going to be a true test as earnings are scheduled to be released. We should see some positive reports as the second quarter of 2009 improved vastly from the previous quarters.
In addition to the earnings reports scheduled in the coming weeks, investors continue to eye the jobs report. Even though job losses are slowing down, the market would like to see some gains in jobs in the coming quarters.
If you have money in the stock market, keep a close eye on earnings report and the jobs number in the coming weeks. These two events should shape the way the stock market performs.
We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.
Stocks usually perform poorly in September and from the looks of overseas markets and US futures, the market is set to start off September tumbling down.
Shanghai’s main index plummeted 5.7% (-163, 2,697) and the Hang Seng lost over 1.8%. In Tokyo the Nikkei 225 stock index was down .4% (-38, 10,495).
Currently the XETRA-DAX is trading down .85% (-47, 5,470) and the CAC-40 is down over .6% (-22, 3,671).
US Futures are down sharply:
- S&P 500 - 8.00
- NASDAQ - 14.25
- Dow Jones -67
The stock market looks to open down sharply, it will be a challenge for the market to fight off the early fall. Due to be released in today’s economic calendar is the Chicago PMI and Motor vehicle sales data.
Asian stocks fall due to China’s plan to curb capacity. China said that they will curb overcapacity and investments in industries such as steel and cement. European shares opened the day flat and are slightly higher in early trading.
The Hang Seng closed down 1 percent (-213) and the Nikkei 225 slid 1.6 percent (-165). The London FTSE 100 is currently up approximately .2 percent, German’s DAX was flat and France’s CAC-40 edged up 0.1 percent.
US S&P Futures are up slightly (+.90), NASDAQ (+.50) and the Dow Jones (+12.00). The US market is expected to open slightly higher but may take a cue from Asian markets and close toward the negative side.
Today’s jobless claims numbers are out in the early morning and can set the tone for the trading day.
Just fresh from Monday’s 6.5% drop, stocks in Shanghai ended the day down 4.3%. Since it’s market peak just two weeks ago, China’s stock market has fallen over 20%. This could be the signal for a Bear market for the Hang Seng. Most of the European markets are down close to 1% in early morning trading.
After the market closed on Tuesday Hewlett-Packard (HPQ) reported a 19% drop in their quarterly report. The drop was mainly due to weak PC and ink sales.
This looks to be a dreadful opening for the US stock market. Investors should have their stops ready and prepare for a rough trading market. The rest of the week can be rough also as options are set to expire this Friday.
After a stellar start to June, the stock market gives up almost all of it’s June gains in two trading days. Yesterday’s loss of 188 points plus today’s negative 107 points takes the Dow back to just a couple of points from where it started June at. This sharp sell off may be a sign of things to come as the market absorbed today’s good housing startup data and continued to fall further. This looks very similar to the trend in May when bad news was absorbed and the market continue to rise; something like a “bizarro” effect. The rapid decline in the last 15 minutes of trading does not bold well for Wednesday. With options expirations coming this Friday (Quadruple Witching), this could be the beginning of a shorterm selloff as many families prepare for Summer break.
Wow June started out great as the Dow surged 241 points and NASDAQ added 62 points during the first two trading days of the month. On Monday and Tuesday stocks were bolstered by good economic data and the conclusion of the General Motors faith.
Today, the stock market has given back close to half of the gains from Monday and Tuesday as the Dow is down 100 and the NASDAQ is down over 30 points. Most of the decline can be attributed to worst than expected economic data. The Commerce Department said that factory order rose 0.7 percent, missing the widely expected number of 0.9. Also the service industry showed an eighth consecutive monthly decline.
Today’s decline can be seen as a welcomed break from the hot 4 session rally. We expect to see the stock market cool down a little from their recent gains. June is typically a poor month for stocks but this year has been far from typical so we will keep a close watch. The direction of the market can quickly shift as more government intervention is expected in the near future. We expect June to be a very rocky month for stocks.
It’s such a joke to see the rally on Monday, based solely on a consumer confidence report. Needless to say, this joke will be discovered very soon and the gains will be given back shortly. We continue to remain bearish on the stock market, our advice is to take profit from Monday’s rally and watch the market retract the rest of the week. The hot air balloon is primed to bust in the short term.
We tried and tried and then tried again, but there’s just no hot stocks that we’d like to recommend at this time. We still like GERN and the sector that they are in but besides that there’s not much on our radar. Last week the stock market had a quick and unexpected rise on Monday. On our Tuesday night blog, we mentioned to our subscribers that we expected the stock market to give back all the gains made on Monday by the end of the week. We were off by 9 points on the Dow and 12 points on the NASDAQ.
This coming week after Memorial Day weekend, we expect the stock market to continue on it’s downward trend. Some important economic news expected this week are as follows:
- 26-May S&P/CaseShiller Home Price Index
- 26-May Consumer Confidence
- 27-May Existing Home Sales
- 28-May New Home Sales
Keep an eye on these reports as they can lead the market higher or lower, depending on how the results are perceived.
As we celebrate Memorial Day, we thank all the troops over seas for courageously protecting our country. We wish them and their families a warm Memorial Day.
After Monday’s 235 point increase on the Dow Jones, many would consider the notion that the recent correction that started on May 11th is over. Well that’s a little too optimistic for us. The impressive gains on Monday was a bit unexpected, in our opinion, we can expect the market to give back the gains later this week. Eventually the stock market will not be able to ignore all the negative economic news. As we have been preaching the last two weeks, the stock market is overbought and will retract. Below are some reasoning behind our opinion.
- Job losses have continued to increase
- Consumer spending is down and Hewlett Packard’s recent report of a 17 percent profit drop, 3 percent sales drop, and to top it off, a 2 percent job layoff
- The housing start numbers are at their lowest since 1956, signs that we are still in the heart of a recession
- Oil prices starting to creep past $60 a barrel
With so many reasons to sell, its an anomaly as to why the market is still up. We continue our bearish outlook in the overall market.
As always we wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy
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