Hedge Funds Under-Exposed in the Stock Market
September 10, 2012
Market Information for this Week.....
Hedge Funds Under-Exposed in the Stock Market – September 10, 2012
The uptrend remains solidly intact, with major equity benchmarks hitting fresh multi-year highs on Friday. Against this scenario, there are several reasons why the all-powerful hedge funds might be scrambling to ramp up their equity exposure. Though a case of pre-Fed paralysis is entirely possible early in the week ahead, it is important to understand the crucial support and resistance levels to watch for the S&P 500 Index (SPX) once the Bernanke bomb drops.
The Week Ahead in the Stock Market – September 10, 2012
The stock market will be laser focused on the Federal Reserve in the week ahead, anxiously awaiting word on whether the central bank will initiate another round of economic stimulus.
At the start of the historically weakest month for equities there are plenty of reasons to believe stocks may be just about reaching a top - at least in the short term.
The S&P 500 has surged 14 percent this year and is at its highest level in more than 4 years. Not counting 2009 when equities rebounded from their crisis lows, this could be the best year for stocks since 2003 - nearly a decade.
Also the information required in regard to earnings, economic data, ETFs is also included.
The Economy and Earnings in the Week Ahead – September 10, 2012
The week ahead is not crowded with a lot of reports on the economy or earnings, but the two-day Fed meeting is the big event in a week that includes some important economic data.
Retail sales data Friday is likely to show consumers increased spending in August, but inflation data could show that some of what is being purchased is just higher priced gasoline.
The Past Week Stock Market Results – September 10, 2012
The expectations for central bank intervention, both from the Fed and the European Central Bank, had fueled a stock market rally that took the S&P 500 to its highest level since January 2008 on Thursday and pushed the Nasdaq to a 12-year high.
The gains were fueled by the ECB's decision to launch a potentially unlimited bond-buying program to lower struggling euro zone countries' borrowing costs.
The Major ETFs in the Week Ahead – September 10, 2012
It was a strong week for stocks and all the ETFs remain in uptrends since June. Not all the ETFs have cleared resistance to a significant degree though, which means that there is still the possibility that this rally could stall out very close to current levels.
On the other hand, if all these ETFs clear that resistance, it is a strong signal that this market has more upside left.