daytrades jan 24 morning ...

Good morning Traders,

DOW Snapshot:

"Nearly half of the companies in the Dow Jones industrial average are scheduled to release quarterly reports this week, and expectations are very high. But don't be surprised if stocks have a muted reaction to stronger-than-anticipated profits and sales. The stock market has grown "complacent," traders say, and it's going to take more than blockbuster earnings and strong economic data to move it higher. What that could be, though, no one was certain.

At the same time, many analysts also believe the market has run out of steam and needs to "rest" for a while. After climbing steadily since the start of December, stocks hit some resistance last week.

The Dow added 1.2%, while the S&P 500 ended last week flat. The Nasdaq, which is looking particularly tired, fell 1.7% over the last five trading days.

"There's a level of complacency in the market, and some of the contrary indicators suggest the market is overbought," said Nick Kalivas, vice president of financial research at MF Global. "Even if the news next week is favorable, it might not translate to higher prices." The weakness in tech last week -- which came despite blowout quarterly reports from IBM, Apple and Google -- is indicative of the market's fatigue, said Kalivas. This week investors will have a slew of top-tier reports to sort through, including numbers from 13 Dow components.
Investors are also expecting this week's statement from the Federal Reserve to be a snooze. The central bank is widely expected to leave its benchmark interest rate unchanged when it wraps up a two-day meeting on Wednesday". [Source: cnnmoney.com]

Market Reflections - Friday, 21st January, 2011

"It was a quiet day in the U.S. with no economic news. But traders continued to reevaluate equities relative to the strength of the recovery and the latest earnings reports. Stock indexes were mixed with favorable news out of Europe that German business confidence was up along with French sentiment while being offset by continued worries about likely rising interest rates in China. On the positive side, General Electric topped expectations and lifted blue chips.

For the day, gold edged down about 3 bucks to $1,342. The Dow gained 0.4 percent to 11,872. Treasury rates eased with the 30-year bond down 4 basis points to 4.56. The dollar index fell 0.9 percent to 78.16." [Source: bloomberg.com]

Market Focus in the US this evening

"With no economic indicators out for the day, traders will start to focus on Wednesday's policy statement from the Fed." [Source: bloomberg.com]

The DJIA Index last finished the last trading session Up 49.04 points; and
The SPI Futures are currently: Up 10 points atm.

Of note in the US this evening:

Please note there is no noteworthy 'Economic news' due to be reported in the US this evening;

...AND...

Of note in Australia today:

Producer Price Index (QoQ) (YoY) (Q4)
[The Producer Price Index released by the Australian Bureau of Statistics measures the average changes in prices in the Australian markets by producers of commodities. Changes in the PPI are widely followed as an indicator of commodity inflation. A high reading is seen as positive (or bullish) for the AUD, whereas a low reading is seen as negative (or bearish).]

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

Gold is currently trading Down $3.20 & is sitting at US$1,342.40/oz atm [Source: Kitco]
Oil is currently trading Down $0.48 & is sitting at US$89.11/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $0.9888c against the US Dollar[Source: Forex. Live]

Have a great day trading today all.

Cheers, Tweets

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