daytrades feb 23 morning ...

Good Morning Traders,

US Market Report:

Libya's escalating political crisis sparked a sell-off in U.S. stocks Tuesday, with the Dow down more than 200 points during the final hour of trading, as oil prices continued to skyrocket.

Ongoing weakness in the housing market also added pressure after a report showed that national home prices fell 4.1% during the fourth quarter of 2010.

The CBOE volatility index (VIX), which is known as the VIX and is used to gauge fear in the market,jumped more than 27% Tuesday.

Market strategists seem to agree that the market is due for a short-term pullback given the steady rise since late August, and the spike in oil prices may be the catalyst to trigger that retreat.

Libya and oil: Oil prices spiked 6% Tuesday to settle at $95.42 a barrel as the trouble in Libya entered an eighth day. Earlier, oil prices came within $2 of $100 a barrel. The turmoil in North Africa and the Middle East has roiled world financial markets, with stocks sinking across Asia and markets in Europe under pressure. "We're facing a fear of the unknown," said Michael Sheldon, chief market strategist at RDM Financial Group. "Investors don't know how serious the political upheaval will become, or how high oil prices may end up going over the next several weeks." [Source: cnnmoney.com]

Market Reflections - Tuesday, 22nd February, 2011

Demand for safety took a tangible turn higher as major oil producer Libya is the latest domino that's tumbling. Oil ended at $93.75, up more than seven percent on the day. Interest rates fell sharply in a key reflection of concern. The 2-year Treasury yield fell seven basis points to 0.69 percent with the 10-year yield down 13 basis points to 3.46 percent. The drop in rates hurt demand for the dollar where the dollar index fell nearly a half percent to 77.80. Metals were mixed with gold little changed just below $1,400 and silver, after spiking to nearly $34.50 overnight, ending lower at just above $33.00.

Adding to demand for safety were weak sales guidance from both Wal-Mart and Home Depot as well as weak sales guidance after the close from Hewlett-Packard, the latter news likely to weigh on tomorrow's market. The Dow fell 1.4 percent to 12,212. Overshadowed in the session were mixed economic data including further erosion in home prices as measured by Case-Shiller and surprising strength in consumer confidence as measured by the Conference Board. [Source: bloomberg.com]

Market Focus in the US this evening

Apart from Libya and the Middle East, existing home sales will offer key data on the still ailing housing sector. [Source: bloomberg.com]
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The DJIA Index finished the last trading session: Down 178.46 points; and
The SPI Futures are currently: Down 44 points atm.
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Of note in the US this evening:

Existing Home Sales [ Market moving indicator]

Charles Plosser speaks
[Philadelphia Federal Reserve Bank President - Speech on the economic outlook to the Rotary Club of Birmingham, Alabama.]

Thomas Hoenig speaks
[Kansas City Federal Reserve Bank President - Speech to the Women in Housing & Finance in Washington.]

...AND...

Of note in Australia today:

Construction Work Done (Q4)
[The Construction Work Done released by the Australian Bureau of Statistics measures the number of construction work done in the last month. It is a key indicator of the Australian construction sector. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

Wage Price Index (QoQ) (YoY) (Q4)
[The Wage Price Index released by the Australian Bureau of Statistics is an indicator of labor cost inflation and of the tightness of labor markets. The Reserve Bank of Australia pays close attention to it when setting interest rates. A high reading is positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]
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Gold is currently trading Down $7.60 & is sitting at US$1,399.00/oz atm [Source: Kitco]
Oil is currently trading Up $5.71 & is sitting at US$95.42/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $0.9991c against the US Dollar [Source: Forex. Live]
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Have a great day trading today all.

Cheers, Tweets

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