Investor Expectations Low but Stock Market Impressive
August 06, 2012
Market Information for this Week.....
Investor Expectations Low but Stock Market Impressive – August 06, 2012
The stock market is impressive -- given the overwhelming amount of bearish sentiment – low investor expectations -- shrouding the market. Also observed in this article, is a notable shift in the VIX options pits on Friday and the effect this will have on short-term bullish investors, as well as the significance of the SPX levels.
August Seasonality - Indicator of the Week – August 06, 2012
This August seasonality may not be as bad a month as the reputation of previous years has shown. Reasons for this bullish comes in the guise of an election year as well as market sentiment!
The Week Ahead in the Stock Market – August 06, 2012
An outline of what is expected of the stock market in the week ahead including earnings, economy and overseas impact. This also entails a look at what influences the market direction such as QE, sentiment, momentum, etc.
Stocks have definitely been riding the tailwinds of central bank promises – the up-down, up-down scenario – with a little more up than down -- and could continue to drift higher in the absence of any nasty surprises from Europe.
Last week was full of event risk – and the stock market has weathered that scenario -- we are through that, and the markets are coming out with some confidence when it comes to risk assets. With the markets not having a lot to be afraid of, and no blatant ‘risk off’ events on the calendar, we’re looking at auction supply.
The Economy and Earnings in the Week Ahead - August 06, 2012
There are a few economic reports and a steady stream of earnings news in the week ahead. But after major meetings this past week where both the Federal Reserve and European Central Bank held out the idea of more quantitative easing, the markets could coast in anticipation of central bank action in the fall.
The week after the jobs report is usually light on economic reports. The most important will be reports on consumer credit outstanding (Tuesday), productivity (Wednesday) and jobless claims (Thursday).
Quarterly earnings due in the week ahead include Walt Disney Co, Priceline.com and Chesapeake Energy. Results from Macy's Inc and J.C. Penney Co Inc should shed light on the strength of consumer spending.
The Major ETFs in the Week Ahead – August 06, 2012
Friday proved to be a strong day once again for the major ETFs. The short-term trend remains higher for all the indexes, although some are performing better than others. Also within striking distance in several of the ETFs are the 52-week highs although the technical outlook is mixed.
The Past Week Stock Market Results – August 06, 2012
Stocks rallied to a three-month high in the past week, helped by more assertive language from the Fed Wednesday. But the market rose sharply Friday after the July employment report showed a surprise gain of 163,000 jobs to nonfarm payrolls, breaking a string of disappointments.