daytrades may 16 morning ...

Good Morning Traders,

US Market Report:

Investors have hunkered down in defensive mode and that trend will continue in the week ahead, which includes a smattering of economic data and the minutes from the most recent Fed meeting. "Investors have turned a little more nervous since uncertainty is starting to creep back into the picture," said Michael Sheldon, chief market strategist at RDM Financial Group. Just two weeks ago, stocks were sitting at the highest levels in nearly three years. But the tide has started to change as investors brace for the conclusion of Fed's bond buying program at the end of June.

Commonly known as QE2 , the central bank's program has pumped $600 billion into the financial system since it launched in November. During that time the Dow has surged almost 20%, while the S&P 500 and Nasdaq Composite have added more than 11%.

That optimism seems to have waned this month, with all three major indexes down almost 2% in May.

"Markets traded lower following the end of QE1 so there's a good possibility that we'll see increased volatility during the next few weeks as we get closer to the end of QE2," said Sheldon.

This week, investors will comb through minutes from the Federal Reserve's meeting last month for clues about how concerned the central bankers are....or aren't...about inflation.
They'll also continue to keep a close eye on the dollar, which has strengthened recently in part because of renewed worries about Europe's debt woes. [Source: cnnmoney.com]

Market Reflections - Friday, 13th May, 2011
Building talk of trouble for commodity-related companies, sparked by recent losses for oil and silver, helped push the Dow down 3/4 of a percent to 12,595. The move out of stocks boosted demand for Treasuries where the 30-year yield ended four basis points lower at 4.32 percent. Sovereign debt troubles for Europe, centered again in Greece, sent the euro down one percent to $1.4100 and helped push the dollar index up more than 1/2 percent. Oil ended firm at $100 with gold at $1,490. [Source: bloomberg.com]

Market Focus in the US this evening

The Empire State report will offer the first look at May and whether the manufacturing sector is losing steam or gaining steam. [Source: bloomberg.com]
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The DJIA Index finished the last trading session: Down 100.17 points; and
The SPI Futures are currently: Down 35 points atm.
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Of note in the US this evening:

Empire State Mfg Survey [ Merits extra attention]

Treasury International Capital [ Merits extra attention]

Housing Market Index [ Merits extra attention]

Fed's Bernanke Speech [ Merits extra attention]
[Gives a press conference as to how the Fed observes the current US economy and the value of USD. His comments may determine a short-term positive or negative trend.]

...AND...

Of note in Australia today:

Home Loans (Mar) [ Merits extra attention]
[The Home Loans released by the Australian Bureau of Statistics presents the number of home loans. It indicates the housing market trend in Australia and a level of consumer confidence as large housing loans are taken out. A high reading is seen positive (or bullish) for the AUD, while a low reading is seen negative (or bearish).]

New Motor Vehicle Sales (MoM) (Apr) (YoY)
[The New Motor Vehicle Sales released by the Australian Bureau of Statistics measures motor vehicle sales in Australia. It is considered as an indicator for consumer confidence. It is worth noting that motor vehicle sales are a small component of the overall Australian economy. Generally speaking, a high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

Investment Lending (Mar)
[The Investment lending released by the Australian Bureau of Statistics measures number of lendings to business enterprises including individual ones. A high reading anticipates growth in the Australian economy, and that is said to be positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

...AND...

Of note elsewhere today/this evening:

European Monetary Union - Consumer Price Index - Core (YoY) (Apr) [ Market moving indicator]

European Monetary Union - Consumer Price Index (MoM) (Apr) (YoY) [ Merits extra attention]

European Monetary Union - Trade Balance (Mar) [ Merits extra attention]

Japan - Consumer Confidence Index (Apr) [ Merits extra attention]

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]

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Gold is currently trading Down $3.10 & is sitting at US$1,492.10/oz atm [Source: Kitco]
Oil (Nymex Crude) is currently trading Down $0.82 & is sitting at US$98.83/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $1.0543c against the US Dollar [Source: Forex. Live]
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Have a great day trading today all.

Cheers, Tweets

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