Up-to-Date Stock Market News for the
August 27, 2012
Market Information for this Week.....
New Range Options from CBOE , August 27, 2012
The Chicago Board Options Exchange (CBOE) just announced plans to launch a new type of S&P 500 Index (SPX) options contract, known as the CBOE S&P 500 Range options. These options are set to begin trading on August 28 and are designed to provide individual investors with a lower-risk, lower-cost way to trade SPX options.
Stock Market Monday and Underperformance, August 27, 2012
Stock market Monday underperformance, as a market indicator, has recently garnered some attention. From June through July, the DOW saw nine straight negative Mondays. Though the Dow has done horribly on Monday, there are individual stocks that have actually done quite well on the first day of the week.
Hedge Fund Managers Becoming More Bullish, August 27, 2012
An esoteric options-based indicator may be showing that hedge fund managers are increasing their long exposure to equities. Also, the CBOE Market Volatility Index (VIX) took a leap, gaining almost 13% on the week. This disparity appears to be "indicative of the fear that lingers in the wake of strong price action."
The Week Ahead in the Stock Market – August 27, 2012
A six-week string of gains in the SPX ended on Friday amid shifting expectations for central bank stimulus. The week ahead could bring clarity on that issue, and that could determine whether the recent rally that took the index to four-year highs will persist.
Also the information required in regard to earnings, economic data and ETFs is included.
The Economy and Earnings in the Week Ahead – August 27, 2012
There is a busy calendar of economic news in the week ahead, but the Bernanke speech trumps all else. The Fed beige book on the economy, second quarter GDP revisions and consumer confidence are among the reports expected. Retailers will release chain store sales Thursday, giving an early look at the back-to-school shopping season.
Earnings season is winding down, with only five S&P 500 components scheduled to report in the week ahead, including Tiffany & Co (TIF), Joy Global Inc (JOY) and H.J. Heinz (HNZ).
The Past Week Stock Market Results – August 27, 2012
The stock market rallied to close near session highs in the past week after Bernanke reiterated that there is further room for the central bank to act and following reports the ECB is considering setting yield band targets in a new bond- buying program.
Still, all three major indexes failed to log gains for the past week, with the Dow and S&P 500 snapping a six-week winning streak.
The Major ETFs in the Week Ahead – August 27, 2012
While the week was still down overall, the index ETFs remain very close to 52-week highs and two of the ETFs actually made new 52-week highs this week. That is a positive sign, but as mentioned in prior market summaries, this is a critical juncture for stocks.
Declining volume warns the rally may be running out of steam, but price - the ultimate indicator - continues to move higher. Using another indicator, the true strength index, you are able to isolate potential turning points quite early, and keep yourself in the trend if the price continues to rally.
A clear break above the 52-week high indicates another wave higher in a long-term uptrend could be underway. The current levels of these index ETFs are pivotal price points.