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Day Trading September 8, 2010 - TraderMongers.com Economic Analysis: Consumer Credit

2010-09-08T05:00:00.023-04:00

S&P 500

There have been so many fears in the media on a double-dip recession that these “financial journalists” forgot the “Sell in May” philosophy and the low volume trading during the summer months. Now summer is officially over after Labor Day weekend and everyone is partly back to work except those individuals that are part of the jobless claim numbers.

We have a short week ahead of us with foreign Central banks announcing their interest rate policies. Currently the 30 minute S&P 500 chart shows we have recovered near the mid-August 2010 levels. The January 2010 resistance levels starting at 1125 on the S&P 500 will hold off any major rallies until confirmation after November mid-term elections. The Beige Book is due out today as well as consumer credits so expect the markets to trade between the 1090 and 1100 area.

On the daily chart of the S&P 500 the market is trading below the 1100 level. The sharp rally from the first week on September indicates a short-covering before the long Labor Day weekend and ahead of the foreign central bank rates announcements. The markets sold off on Tuesday as upcoming economic numbers needed to be available for institutional traders and investors to find direction. The S&P 500 should be trading between 1090 and 1100 where the majority of Fibonacci moving day averages converges until direction is decided.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks. The VIX peaked during the Sell in May seasonal trend trading above the 30 mark as institutions and investors switched from equities to cash before the summer vacation season.

Currently the VIX is trading slightly below the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnified moves on the VIX so markets could be less liquid markets than fear-driven. The previous low for the VIX is the 22 area which has been recently broken however this is not confirmation that institution and investors are coming back only that short covering has taken place.

The Chicago Board Options Exchange (CBOE) Market Volatility Index measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar when the index is trading above 30.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Support Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1078: 144 Day Fibonacci Moving Average on 5 Minute Chart

1080: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1088: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Mortgage Applications 7.30 EST

Beige Book / 2.00 EST

Consumer Credit / 3.00 EST

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- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

Day Trading September 7, 2010 - TraderMongers.com Economic Analysis: Beige Book

2010-09-05T05:00:00.021-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Both international as well as U.S domestic markets rallied after mixed economic data last week. No one wants to be caught in short positions from their August trades ahead of upcoming economic data and increasing volume as the summer season ends. The international markets rallied due to a slew of upcoming Central Bank announcements meetings this week from

Japan

Australia

Canada

, and

England

. U.S markets rose ahead of the long Labor Day weekend which ends the vacations of most Americans, sends children back to school this week, and prepares the markets for increasing volume from returning institutions and investors.

President Obama promised to stimulate the economy following the mid-term elections. This may improve the unemployment rate if the Democrats maintain their numbers. Otherwise the Republicans will hold a sitting duck President for the next two years. Expect a sideways trading until November.

Another cause of high unemployment was mentioned in a recent Barrons article as retirees are flooding their money into bond funds and driving down yields. Corporate bonds then use the cheap cash to instigate mergers and acquisitions across the board that lead to higher unemployment.

Currently the 30 minute S&P 500 chart shows we have recovered near the mid-August 2010 levels. The January 2010 resistance levels starting at 1125 on the S&P 500 will hold off any major rallies until confirmation after November mid-term elections. The Beige Book is due out this week providing a clue to the economic conditions that will affect interest rate policy at the FOMC meeting.

On the daily chart of the S&P 500 the market is trading above the 1100 level. The sharp rally from the first week on September indicates a short-covering before the long Labor Day weekend and ahead of the foreign central bank rates announcements.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Support Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1075: 144 Day Fibonacci Moving Average on 5 Minute Chart

1075: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1088: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

No Economic Numbers

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

Day Trading September 3, 2010 - TraderMongers.com Economic Analysis: ISM Non-Mfg Index

2010-09-03T05:00:00.012-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

President Obama will be taking care of stimulating the economic activity in the

USA

while ending the military activity in

Iraq

. The end of the military activity may not go well for Aerospace and Defense sector stocks. Retails have a strong August due to back to school sales. Yesterday jobless claims edged lower however not enough to make a long-term impact. Economic activity is still the same as we are in the worst economic environment since the Great Depression. During that time the stock market did not hit a new high until after two decades had past.

Today Employment situation and Non-ISM manufacturing numbers are on the menu for today. Institutions and investors will be returning back to the markets after the Labor Day weekend on Tuesday. However for now traders are covering up their short positions from their August trades.

On the daily chart of the S&P 500, the market is still trading below between the 144 and 200 day moving averages after the first day of September. During the month of August the S&P 500 attempted to break through the 2010 January resistance levels starting from 1125 however fell short due to volume. Markets should continue to trade sideways for the next two months until elections are over in November. Volume will expect to pick up after the Labor Day weekend as institutional traders and investors return from their summer vacations.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks.

The VIX peaked in May during the Sell in May seasonal trend trading above the 30 mark as institutions and investors switched from equities to cash before the summer season.

Currently the VIX trading slightly below the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnified moves on the VIX so markets could be less liquid markets than fear-driven. The previous low for the VIX is the 22 area which will be broken once the market finds direction after the mid-term elections in November.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Support Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1074: 144 Day Fibonacci Moving Average on 5 Minute Chart

1070: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1089: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Employment Situation / 8.30 EST

ISM Non-Mfg Index / 10.00 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: September 2, 2010 Jobless Claims

2010-09-02T05:00:00.017-04:00

S&P 500

Yesterday we expected a short-covering rally as we begin the first day of September as we head towards the Labor Day weekend while economic conditions still remain the same. President Obama set a goal of doubling American exports to cushion the economic decline. This is done through deflation by cutting prices domestically.

Investors eagerly bought up stocks and other risky assets on better-than-expected

manufacturing numbers. The S&P 500 30 minute chart shows the market moved higher above the 144 Fibonacci moving averages and the 200 day exponential moving averages.

On the daily chart of the S&P 500, the market is still trading below the 144 and 200 day moving averages on the first day of September. During the month of August the S&P 500 attempted to break through the 2010 January resistance levels starting from 1125 however fell short due to volume. Markets should continue to trade sideways for the next two months until elections are over in November. Volume will expect to pick up after the Labor Day weekend as institutional traders and investors return from their summer vacations.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks. The VIX peaked in May during the Sell in May seasonal trend trading above the 30 mark as institutions and investors switched from equities to cash before the summer season.

Currently the VIX trading slightly below the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnified moves on the VIX so markets could be less liquid markets than fear-driven. Expect us to be at this range until direction comes back into the markets after the 2010 mid-term elections in November.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Resistance Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1072: 144 Day Fibonacci Moving Average on 5 Minute Chart

1065: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Chain Store Sales

Jobless Claims / 8.30 EST

Factory Orders / 10.00 EST

Pending Home Sales Index / 10.00 EST

Natural Gas Report / 10.30 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: September 1, 2010 FOMC Minutes

2010-09-01T05:00:00.025-04:00

S&P 500

End of vacations and back to school hits September as it starts the business year. Crude oil will be reaching its peak in September as hurricane seasons are behind us. Yesterday’s FOMC minutes showed the Fed officials divided over the direction of how to manage the changing Fed balance sheet.

August trading volume did not give the markets the lift it needed and continued to end lower as the month continued. Majority of rallies were short-covering rather than institutional buyers and investors entering the markets. The S&P 500 30 minute chart shows the market moving lower and trading below the 144 and 200 day moving averages. Expect a short-covering rally as we begin the first day of September as we head towards the Labor Day weekend.

On the daily chart of the S&P 500, the market continued to trade below the 144 and 200 day moving averages as we approached the end of August. As institutions and investors return to the markets after the Labor Day weekend and volume picks up expect uncertainty to exist as we approach mid-term elections in November. Markets should continue to trade sideways for the next two months until elections are over.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks.

Currently the VIX trading at the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnifies moves on the VIX so markets could be less liquid markets than fear-driven. Expect us to be at this range until direction comes back into the markets after the 2010 mid-term elections.

The Chicago Board Options Exchange (CBOE) Market Volatility Index measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar when the index is trading above 30.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Resistance Level

1050: Natural Support Level

Technical Levels 30 Minute Chart

1072: 144 Day Fibonacci Moving Average on 5 Minute Chart

1065: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1096: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Motor Vehicles Sales

Mortgage Applications / 7.00 EST

ISM Mfg Index /10.00 EST

Construction Spending / 10.00 EST

Petroleum Report / 10.30 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: August 16, 2010 Empire State Manufacturing Survey

2010-08-15T17:00:00.003-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

After the Federal Reserve stated it will be purchasing Treasurys to keep the economy recovery on track, worried investors sold off accordingly to the FOMC announcement. The added news of

China

not helping the global economy during the recovery multipled the existing fear. The Dow Industrials moved above their June high however the S&P 500 did not confirm the move by moving higher. These are indications of negative trends and bearish markets ahead until the November mid-term elections are over.

As the August volume gets thinner analysts need to look at the charts with a long-term view of the markets. Two weeks ago the markets were trying to break through the January 2010 resistance level beginning around 1125 on the S&P 500. The market made several attempts however fell short and it is currently trading below the 1100 area.

On the daily chart of the S&P 500, the market is currently trading below the 144 and 200 day moving averages after its failed attempt trying to break through the January 2010 resistance level. We expected August to trade below this level due to lack of volume and uncertainty within the markets including the China slowdown, upcoming elections, and weak labor market.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks. Currently the VIX trading at the 144 and 200 day moving averages indicating more risky approach towards investments and assets. The thin trading volume in August magnifies moves on the VIX so markets could be less liquid markets than fear-driven.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

Technical Levels 15 Minute Chart

1096: 144 Day Fibonacci Moving Average on 5 Minute Chart

1099: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1091: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Empire State Manufacturing / 8.30 EST

Housing Market Index / 10.00 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: August 12, 2010 Jobless Claims

2010-08-11T17:00:00.000-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Slowing growth in

China

and flagging

recovery as well as the Federal Reserve pledging to buy more Treasurys to keep the economy recovery on track brought the markets down the day after the FOMC Announcement.

Historically August is the weakest month of all seasons as many institutions, investors, and traders are away during the month of August on vacations before their children go back to school in September. We have stated to beware of rallies as the middle of August seems to be stronger than the beginning and the end according to the Stock Trader’s Almanac.

Traders seem to sell before the weekend and follow the direction of the foreign markets after they trade on Monday. However if the markets are lower during the week then traders may buy back their shorts before the weekend so we could expect a rally on Thursday or Friday. Currently we are trading below the 1100 level on the S&P. Last week we had a hard trouble breaking through the January 2010 resistance levels due to thin August volumes.

On the daily chart the S&P is behaving exactly as predicted. It rallied to the 1125 level which begins the January 2010 resistance then due to thin volume fell threw between the 144 and 200 day moving averages. We expected August to trade below this level due to lack of volume and uncertainty within the markets including the

China

slowdown, upcoming elections, and weak labor market.

The Market Volatility Index or VIX track prices that investors are willing to pay for options on the S&P 500, usually to protect themselves against declines in stocks.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

Technical Levels 15 Minute Chart

1120: 144 Day Fibonacci Moving Average on 5 Minute Chart

1118: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1091: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Jobless Claims / 8.30 EST

Natural Gas / 10.30 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: August 10, 2010 FOMC Announcement II

2010-08-09T17:00:00.013-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Today is the 7^th trading day of August and the market has held up well however today is the FOMC Announcement so anything can go. After the Nonfarm payrolls fell by 131k last month, traders and investors are looking for the Fed will need to ease policy to stimulate the economy. Some of these measures include the Fed buying Treasuries and postponing any sales of its balance sheet assets. However the concern over deflationary pressures is a concern for the Fed.

According to the Stock Trader’s Almanac, the S&P was up only twice in the last 13 years and the first nine trading days are the weakest of the month. Historically it is the weakest month of all seasons as many institutions, investors, and traders are away during the month of August on vacations before their children go back to school in September.

Beware of rallies as the middle of August seems to be stronger than the beginning and the end according to the Stock Trader’s Almanac. Traders seem to sell before the weekend and follow the direction of the foreign markets after they trade on Monday.

China

brought the Asia markets lower pushing the dollar higher against all major currencies.

Yesterday the market broke through into the January 2010 resistance level. Last week the markets had a hard time breaking through the 1125 resistance level which begins the January 2010 resistance levels. Whether the markets can hold on to this level is another story only to be determined after the FOMC announcement. Not enough volume is expected during the summer months to push the markets above this level especially during the month of August. However with global economy expecting slowdown foreign economies see safety within the

markets.

On the daily chart of the S&P 500 we were trading between the cushion area of 144 and 200 day moving averages as traders and investors are cautious looking ahead especially with the upcoming mid-term elections, uncertainty with European debt, and the current Gulf Oil Spill. Now we have slowly broke out of this area after the European banks passed the stress tests. However as we have stated before the markets will remain trading below the January 2010 resistance levels which begin at 1125.

The Market Volatility Index (VIX) has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy however seems to stabilizing after the Fourth of July weekend and the anticipation of second quarter 2010 earnings season. Currently the VIX trading below the 144 and 200 day moving averages indicating more risky approach towards investments and assets.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

Technical Levels 15 Minute Chart

1120: 144 Day Fibonacci Moving Average on 5 Minute Chart

1118: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1091: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

FOMC Announcement / 14.15 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: August 9, 2010 FOMC Announcement

2010-08-08T17:00:00.013-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Beware of August rallies as the middle of August seems to be stronger than the beginning and the end. Traders seem to sell before the weekend and follow the direction of the foreign markets after they trade on Monday.

Last week the markets had a hard time breaking through the 1125 resistance level which begins the January 2010 resistance levels. Not enough volume is there during the summer months to push the markets above this level especially during the month of August.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

Technical Levels 5 Minute Chart

1117: 144 Day Fibonacci Moving Average on 5 Minute Chart

1115: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1090: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Tuesday FOMC Announcement / 14.15 EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers Day Trading Economic Analysis: July 28, 2010 Beige Book

2010-07-28T17:00:00.001-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

A weak July consumer confidence fell to a 5-month low offset the latest round of strong corporate earnings. On Wednesday June durable goods orders as well as the weekly mortgage applications and petroleum reports. The Beige Book is expected today which report economic conditions used for the FOMC meetings in 2 weeks. Expect the market to move after the 2pm Eastern Standard Time announcement.

On the S&P 500 on the 60-day chart shows we have been rallying since the beginning of July especially after options expiration last Friday. Expect the market to hit the January 2010 resistance level as we approach the slowest month of the year – August. The volume will not be enough in August to break through the January resistance levels. The FOMC announcement is in two weeks so expect the markets to remain calm and volume stale for the rest of the summer.

On the daily chart of the S&P 500 we were trading between the cushion area of 144 and 200 day moving averages as traders and investors are cautious looking ahead especially with the upcoming mid-term elections, uncertainty with European debt, and the current Gulf Oil Spill. Now we have slowly broke out of this area after the European banks passed the stress tests. However expect the markets to remain trading below the January 2010 resistance levels.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

Technical Levels 5 Minute Chart

1111: 144 Day Fibonacci Moving Average on 5 Minute Chart

1108: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1101: 144 Day Fibonacci Moving Average on Daily Chart

1088: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Mortgage Applications / 7.00AM EST

Durable Goods Orders / 8.30AM EST

Petroleum Report / 10.30 AM EST

Beige Book / 2.00 PM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers: Day Trading Economic Analysis July 23, 2010

2010-07-23T07:09:00.001-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

One week ago we suggested that the market will sell off on Friday due to traders and investors not holding their positions over the weekend. We are currently holding this belief going into this Friday – either the market sells off or trades flat. The rally of the markets today due to strong earnings pushed the dollar lower against the euro as traders took more risk.

During a testimony between Ben Bernanke and the House Financial Services Committee, the Fed Reserve Chairman spoke about further stimulus actions.

Looking at the Asia markets China is expected to slowdown and

Japan

was downgraded by Credit Suisse.

We only rallied to about the same level as one week ago on the 10 minute chart of the S&P 500 as traders relieved their positions last Friday and bought up their shorts this week. With no economic news on Friday except for earnings expect it to be a quiet day in the markets with a possibility of short sellers coming by the afternoon.

The S&P 500 shows that we are nearing the 144 day moving average on the daily chart. The 1100 area is a tough resistance level to break when the volume is not there during the slow summer trading months.

The Chicago Board Options Exchange (CBOE) Market Volatility Index (VIX) measures options activity within the market and is widely used tracking the S&P 500. The Market Volatility Index (VIX) has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash.

If the index is above 30 then traders and investors are switching from riskier assets to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar.

Lower than 30 especially breaking through the two major moving averages of 144 and 200 means that people are buying riskier assets and financial instruments. The Market Volatility Index seems to stabilizing after the Fourth of July weekend and along with the release of second quarter 2010 earnings season.

Currently the VIX is trading below 30 however it is resting and wrapping around the 144 and 200 day moving averages. This suggests that the volume and activity is not there to indicate a directional trend of either bullish or bearish. Direction would mostly come after the mid-term elections in November once fiscal and monetary policies are defined for the next two years.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Resistance Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1083: 144 Day Fibonacci Moving Average on 5 Minute Chart

1181: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1100: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

No Economic Numbers

Disclaimer

TraderMongers: Day Trading Economic Analysis July 16, 2010

2010-07-16T00:36:00.000-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Deflation risk is influencing the markets as lower money supply and credit are affecting both the producer prices and manufacturing sectors. Lower food prices affected the producer price index which is a leading indicator affecting consumer prices. Overall this translates into low interest rates and could be good for profits if money supply and credit is available for growth.

However lower numbers in the manufacturing sector translated into a slowdown in growth. This has been indicated by the lower Empire State and Philly Fed numbers as well as the Industrial Production report. If these manufacturing reports announced higher numbers and PPI was low then we could have a positive and sustained growth. But lower numbers in manufacturing and a lower PPI makes a case for deflation risk.

The S&P 500 opened up lower breaking Wednesday’s previous low before rallying at the end of the day. Looking at the 5 minute chart we are in a trading range making three attempts flirting with the 1100 level on the S&P 500.

On the daily chart of the S&P 500 we are trading between the cushion area of 144 and 200 day moving averages as traders and investors are cautious looking ahead especially with the upcoming mid-term elections, uncertainty with European debt, and the current Gulf Oil Spill.

The Market Volatility Index (VIX) has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy however seems to stabilizing after the Fourth of July weekend and the anticipation of second quarter 2010 earnings season. Currently the VIX is at the 144 and 200 day moving averages indicating a steady cautiousness between traders and investors.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1089: 144 Day Fibonacci Moving Average on 5 Minute Chart

1188: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Consumer Price Index / 8.30 AM EST

Consumer Sentiment / 9.55 AM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers: Day Trading Economic Analysis July 14, 2010

2010-07-14T06:40:00.001-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Yesterday the

trade gap jumped 4.8% from $40.32 billion in April to $42.27 billion in May which is the highest level in 18 months. This increase will cut into second quarter GDP forecasts. However this did not stop traders and investors to switch to riskier assets as the market went higher on the sixth straight day. The dollar declined as investors stepped up and demonstrated willingness to take risk. The futures pushed the S&P 500 higher in the morning and maintained a positive direction towards the close yesterday on the five minute chart.

But a worsening trade gap is a drag on growth. Growth must be sustained for unemployment to decline and payroll numbers to advance. Especially when economic turmoil in Europe, financial oversight and healthcare reform are passed around as reasons that employers are unwilling to take new business risks. So why is the market rallying?

Second quarter earnings season is pushing the market higher. Nobody wants to be short during earning seasons and many traders and investors are covering their positions. The S&P 500 is nearing the 1100 natural resistance level and trading between the 144 and 200 day moving averages on the daily chart. Right now we are seeing a massive short covering during the month of July due to earnings season. Expect August to be a month where volume dries up and short sellers reenter the market.

The Market Volatility Index has been active due to the seasonal selling trend of the ‘Sell in May’ philosophy. If the index is above 30 then traders and investors are switching from riskier assets to cash. Lower than 30 especially breaking through the two major moving averages of 144 and 200 means that people are buying riskier assets and financial instruments.

The Market Volatility Index seems to stabilizing after the Fourth of July weekend and the anticipation of second quarter 2010 earnings season. The volatility index is pushing for riskier assets however with the upcoming mid-term elections, uncertainty with European debt, and the Gulf Oil Spill – traders and investors are cautious looking ahead.

The Chicago Board Options Exchange (CBOE) Market Volatility Index (VIX) measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1088: 144 Day Fibonacci Moving Average on 5 Minute Chart

1184: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1086: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

Mortgage Applications / 7.30 AM EST

Retail Sales / 8.30 AM EST

Business Inventories / 10.00 AM EST

Petroleum Report / 10.30 AM EST

FOMC Minutes / 2.00 PM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

TraderMongers: Day Trading Economic Analysis July 13, 2010

2010-07-13T03:01:00.001-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The market struggled to find direction amidst uncertainty weighing on Europe and second quarter 2010 earnings season. Many traders and investors took profits in the morning before the S&P continued its trend just above Friday’s previous high.

Before the second quarter earnings season started the S&P 500 rallied just below the 200 day moving average on the daily chart of 1086. The results of the second quarter earnings could push the market higher if the numbers are better than expected. However any market leader having a bad second quarter could push an industry sector lower while another sector leader rise higher.

For example Walmart could lead the retails sector higher if second quarter earnings are better than expected and the outlook remains positive. However technology giant Apple may suffer lower second quarter earnings and push the other tech stocks lower.

Summary of Major S&P Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1073: 144 Day Fibonacci Moving Average on 5 Minute Chart

1171: 200 Day Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1102: 144 Day Fibonacci Moving Average on Daily Chart

1086: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

International Trade / 8.30 AM EST

Treasury Budget / 2.00 PM EST

* Subscribe to our News Feed to get Updates, Trading Strategies Daily, and Sector Stock Lists.

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

Day Trading Economic News Analysis: S&P 500 July 8, 2010 Consumer Credit

2010-07-08T04:32:00.002-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The market pushed higher with the anticipation of the upcoming earnings season pushing the Dow Industrials above 10,000. The Europeans released the results of their bank stress tests relieving some worries and pushing the euro into a 6-week high against the dollar. Yesterday Barrons mentioned the euro positively as they see a rally within the currency. The falling dollar pushed crude oil futures higher along with stocks as traders and investors switched from cash to equities.

The

futures opened above Fibonacci moving averages (8 21 55 144) in the morning and stayed above them as it broke through yesterday’s previous high and the 1050 resistance level. Breaking through two pivot levels gave a confirmation that we were in a rally.

The S&P is currently above the pivot level of 1050 however still below the 200 day moving average of 1086 on the daily chart. The NYSE Euronext indicated 6.9% decline in trading volumes compared to last year. Especially due to the low volume summer months we do not believe we will break through the January 2010 which starts around 1025 until after the November mid-term elections.

The Market Volatility Index is currently between 25 and 30, which usually means that traders and investors are holding their positions whether it is equities or cash especially with the uncertainty within the global economy.

The markets do not have enough volume to push and stabilize the markets during the summer months and most likely stay between this range for some time. As you can see from the Volatility chart that beginning in May, traders, investors, and institutions started increasing their cash positions and stuck to the “Sell in May” philosophy.

Tomorrow the Forex markets may watch the Bank of England and the European Central Bank interest rates announcements. On the

economic front watch out for weekly jobless claims and natural gas report as well as the consumer credit numbers in the afternoon.

* Subscribe to our news feed to get updates, strategies, and equity trading lists available only on TraderMongers.com

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

Day Trading Economic News Analysis: S&P 500 July 7, 2010 Retail Sales

2010-07-07T00:45:00.000-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The

markets rallied in the morning following positive trading activity within the foreign markets. However selling started once reality set into the minds of traders and investors that nothing fundamentally has changed within the markets. The debt crisis in Europe, BP oil spill, and the

China

slowdown. The futures started higher in the morning however it fell short of the 1050 resistance level on the S&P 500. Reality set in once ISM Non-Manufacturing numbers were released after 10am and it was lower than the consensus. Selling took place soon afterwards and the S&P 500 rested just above the 1025 natural support level.

Currently the S&P 500 is trading below the 144 and 200 day moving averages on the daily chart. In late June the market rallied just above the 1025 level however it could not break the January 2010 resistance level and it fell back. Due to the low volume summer months we do not believe we will break through the January 2010 until after the November mid-term elections.

* Subscribe to our news feed to get updates, strategies, and equity trading lists available only on TraderMongers.com

- Technical and pivot levels for the S&P and other indices

- Alerts for 52 highs and lows as well as their respective sister stocks to watch

- Highlights on the economic calendar and trading strategies off those numbers

- Analysis of various sectors of the markets as well as sister stocks to watch

- Much more

Disclaimer

Day Trading Economic News Analysis: June 25, 2010 Russell Rebalance

2010-06-25T08:30:00.000-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

Annual Russell Rebalance 2010

The annual Russell rebalance occurs on the last Friday of June. The rebalance consists of updating the global list of investment equities and assigning them appropriately to their indices. The additions and deletions of equities to various indices create a spread. Speculators enter the market to take advantage of the spread. However too much speculator activity will cause major reversals as speculators create more supply and demand to the market to take advantage of the price action.

For example: If there is a buy imbalance of 5,000,000 shares of AAPL at the end of the day and there is usually only an average trading volume of 2 million shares then speculators will take advantage of the extra demand. Speculators will buy AAPL shares and have a Market on Close Sell Order to sell to the buyer of the 5 million shares. The profit is made by taking advantage of the price action that occurs.

However if too many speculators enter the market and if the demand of the 5 million shares is equally supplied then there will be extra supply. The original buy imbalance will reversal into a sell imbalance. Market activity for the Russell rebalance begins during the last 10 to 15 minutes of the closing day on Friday, June 25, 2010.

S&P 500 Pivots

Consumer discretionary and energy sectors took a beating due to disappointing earnings and uncertainty over deep-water drilling. The downgrade in the US economy after the FOMC announcement on Wednesday did not help build confidence for traders and investors. This was relevant when the S&P 500 opened below Thursday’s previous low.

Currently the S&P 500 is continuing to trade below all the major Fibonacci moving averages (8, 21, 55, 144). The index rallied mid-day then reversed when it hit Thursday’s previous low and extended lower. We will give examples of stocks that followed the S&P 500 movements and how news was related to those stocks as mentioned on our TraderMongers.com News Feed.

News broke that Disney was going to open a pet hotel for its visitors. The stock went lower however followed the movement in the S&P by rally to its previous Thursday low before ending near the low of the day.

Sempra Energy had news that it could continue operations in Mexico due to an environment regulation that was eliminated. The stock rallied on the news then fell when the S&P 500 reversed direction.

Walmart broke through Thursday’s previous lows on lower consumer confidence and continued lower when the S&P 500 reversed form its mid-day rally.

On the daily chart of the S&P 500, we are trading below the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

- If we break above 1110 then expect the January 2010 resistance levels starting at 1125 to hold back the market during these low volume summer months.

- If we break below 1087 then be wary of picking bottoms in the market as we may be expect to go even lower due to the slow down in manufacturing, increasing jobless claims, the European debt crisis, and the fears of another ‘flash crash’

The Market Volatility Index is currently between 30 and 25, which usually means that traders and investors are switching from cash to riskier assets such as equities and other financial instruments. We have stated before that we will be within a trading range after the FOMC Announcement.

If the volatility breaks through the 25 level then the markets show an influx of equity purchases. The 25 level is a major level of support for CBOE Market Volatility Index as it is the convergence of the 144 and 200 day moving averages.

This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction. The index is continuing to stay within a range between 25 and 30 so this range should continue due to the low volume of tradint activity throughout the summer months.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1190: 200 Day Moving Average on 5 Minute Chart

1085: 144 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1088: 200 Day Moving Average on Daily Chart

Daily Economic Calendar

GDP / 8.30 AM

Consumer Sentiment / 9.55 AM

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 24, 2010

2010-06-23T18:40:00.001-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500 Pivots

The Federal Reserve kept short-term interest rates at record lows however downgraded its outlook on the US economy. One of the issues that need to be addressed is ‘shadow-inflation.’ This type of inflation is sneaking into the US economy and slowly hindering economic recovery. The S&P 500 is currently continuing to trade below multiple Fibonacci moving averages on 5 minute chart. After today’s FOMC Announcement the market lower on the S&P 500 index however slightly higher on the Dow Industrials.

On the daily chart of the S&P 500, we are between the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

- If we break above 1110 then expect the January 2010 resistance levels starting at 1125 to hold back the market during these low volume summer months.

This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction. Today’s FOMC announcement stayed within a range between 25 and 30 so most likely we will stay within this range throughout the summer months due to low volatility.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1098: 144 Day Fibonacci Moving Average on 5 Minute Chart

1101: 200 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1088: 200 Day Fibonacci Moving Average on Daily Chart

Daily Economic Calendar

Durable Goods Orders / 8.30 AM

Jobless Claims / 8.30 AM

Natural Gas Report / 10.30 AM

Disclaimer

Day Trading Economic News Analysis: June 23, 2010

2010-06-22T19:14:00.004-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500 Pivots

The market continued its slide from yesterday after enthusiasm over China revaluing the Yuan over the weekend faded. Today the energy sector led the way of possible fear after a federal judge in New Orleans blocks Gulf offshore drilling moratorium by siding with the energy industry against the White House. US Existing Home Sales were down 2.2%. This news may have affected the market however everyone could be waiting for tomorrow’s FOMC Announcement.

The technical levels we are currently trading below multiple Fibonacci moving averages on 5 minute chart. Tomorrow’s FOMC Announcement may push the market higher as 11 out of the last 12 FOMC Announcements have ended with a positive S&P 500 close.

On the daily chart of the S&P 500, we are between the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

- If we break above 1110 then expect the January 2010 resistance levels starting at 1125 to hold back the market during these low volume summer months.

This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction. Depending on tomorrow’s FOMC announcement either we will break out of the trading range or we will stay within this range throughout the summer months due to low volatility.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1111: 144 Day Fibonacci Moving Average on 5 Minute Chart

1112: 200 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Fibonacci Moving Average on Daily Chart

Daily Economic Calendar

Mortgage Applications / 7.00 AM

New Home Sales / 10.00 AM

Petroleum Report / 10.30 AM

FOMC Announcement / 2.15 PM

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 22, 2010

2010-06-21T18:08:00.008-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Over the weekend the Chinese unpegged their currency, which drove investors and traders back into the market. However Chinese exports may become cheaper it does help much when the global economy is recovering.

The technical levels on 5 minute chart shows the index facing resistance breaking through January 2010 levels. These levels start at 1125 and each level above become harder to break especially during these low volume summer months.

On the daily chart of the S&P 500, we are just above the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

- If we break above 1110 then expect the January 2010 resistance levels starting at 1125 to hold back the market during these low volume summer months.

The Market Volatility Index is currently below 30, which usually means that traders and investors are switching from cash to riskier assets such as equities and other financial instruments. As we stated yesterday if the volatility breaks through the 25 level then the markets show an influx of equity purchases. Yesterday the index ended at 24.88 resting on the convergence of the 144 and 200 day moving average on the daily chart. It is still too close to call whether investors and traders are ending the markets since the FOMC announcement is scheduled for Wednesday. The markets may have sideways trading awaiting for tomorrow’s announcement.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1119: 144 Day Fibonacci Moving Average on 5 Minute Chart

1118: 200 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Fibonacci Moving Average on Daily Chart

Tuesday Economic Calendar

FOMC Meeting Begins

Existing Home Sales / 10.00 AM

4 – Week Treasury Bill Auction / 11.30 AM

2 – Year Note Auction / 1.00 PM

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 21, 2010

2010-06-18T18:33:00.007-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The market previously rallied up for the past week in anticipation for Friday’s quadruple witching day. Sideways trading occurred as expiration of contracts for all stock index futures, stock index options, stock options, and single stock futures took place.

This Wednesday on June 23rd we have the FOMC meeting, which will give us a direction on where interest rates will be heading. With jobless claims still high and the economy still recovering expect the interest rates to be kept the same however watch for any indication in the wording once the FOMC announcement is made.

Currently, ‘shadow inflation’ has been on the rise as airlines are adding additional subcharges, telecommunications are increasing pricing, and banks are adding additional fees for maintaining accounts. This type of inflation will erode potential recovery and consumer savings.

Looking at the technical level on the 5 minute chart for the S&P 500 Index, we are currently below the January 2010 resistance level which starts at the 1125 level. Breaking this level could mean a huge push upwards as investors and traders return into the markets. However summer has already started so be cautious of low volume trading days ahead and expect days with quick rallies followed quick falls.

On the daily chart of the S&P 500, we are between the 144 and 200 day moving averages of 1110 and 1087. Do not expect any major movements unless we break out of this trading range.

- If we break above 1110 then expect the January 2010 resistance levels starting a 1125 to hold back the market during these low volume summer months.

The Market Volatility Index is currently below 30, which usually means that traders and investors are switching from cash to riskier assets such as equities and other financial instruments. If the volatility breaks through the 25 level then the markets show an influx of equity purchases. The 25 level is a major level of support for CBOE Market Volatility Index as it is the convergence of the 144 and 200 day moving averages. This index must break down below 25 or bounce above 30 for the markets to show a consistent momentum and direction.

Summary of Major Pivot Levels

1219: S&P 500 52 Week High

Technical Levels Natural Support and Resistance

1125: January 2010 Resistance Level

1100: Natural Support Level

1075: Natural Support Level

Technical Levels 5 Minute Chart

1115: 144 Day Fibonacci Moving Average on 5 Minute Chart

1114: 200 Day Fibonacci Moving Average on 5 Minute Chart

Technical Levels Daily Minute Chart

1110: 144 Day Fibonacci Moving Average on Daily Chart

1087: 200 Day Fibonacci Moving Average on Daily Chart

Monday Economic Calendar

No Economic Numbers Scheduled – Watch European and Asian Markets

3 – Month Bill Auction / 11.30 AM

6 – Month Bill Auction / 11.30 AM

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 14, 2010

2010-06-11T19:18:00.004-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The last two days we had a short covering rally before the weekend. Many believe that the gold rally is over due to deflation hitting the European countries and

China

’s impending economic slowdown. However gold pushed higher between the months of April and May due to the one million weddings in

India

. Now that the demand for gold is over, we must look at what will drive gold in the immediate future. Main issue would be safety from the equities and real estate properties. Other vehicles for safety include the dollar and Treasuries.

Next week will be a huge week for the markets as Housing, CPI data, and Quadruple Witching Day approaches. On Wednesday FedEx will report quarterly results and they will also forecast their global trade. Many traders and investors will decide on where to invest their cash. The euro will most likely continue lower due to high unemployment in

Greece

reaching over 12% while

Spain

struggles with 20%.

The S&P 500 is currently trading above all moving averages on the 5 minute chart as bears cover their shorts before the weekend. We are currently trading above the important 1090 pivot level. Any trade below this pivot could indicate bears returning to hammer the markets down.

The markets look like staying between the 1050 and 1100 for the low volume summer months. We are currently between the 144 and 200 day moving averages on the daily chart. With a large number of economic numbers due next week as well as Quadruple Witching Day on Friday, where various expiration on financial instruments expire, do not expect a confirmed rally especially throughout these low-volume trading summer months. We still believe that any positive news is considered a temporary rally as move into August which is considered the slowest trading month.

The Chicago Board Options Exchange (CBOE) Market Volatility index (VIX) measures options activity within the market and is widely used tracking the S&P 500. A common trading strategy for traders and investors includes a VIX level of 30 or above means an immediate switch from equities to cash. Traders and investors are retreating from the markets and finding safety and protection within the Treasuries, gold, and the dollar.

As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The volatility index is just below the 30 level and there is support around 25 due to the convergence of the 144 and 200 day moving averages on the daily chart.

The low volume in the recent rally and liquidation of mutual fund investors due to frightening instances such as the ‘flash crash,’ European debt crisis and BP Oil Spill expect volatility will return and traders will prey and make money on both ends. Traders will buy when investors are fearful and sell when they are euphoric and confident.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1110: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1081: 144 Day Fibonacci Moving Average on 5 Minute Chart

1077: 200 Day Fibonacci Moving Average on 5 Minute Chart

1075: Natural Support Level

1050: Natural Support Level

Monday Economic Calendar

No Economic Numbers Scheduled – Watch European and Asian Markets

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 11, 2010

2010-06-10T19:14:00.007-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

The S&P 500 index is currently trading between these natural support and resistance levels: 1050, 1075, and the 1100. We are also trading above the 200 day moving average on the 5 minute chart at 1073. Do not expect a break below the 1075 level on Friday due to the support levels provided by both the 144 and 200 day moving averages. The markets will most likely trade sideways going into Friday’s trading.

On Thursday the S&P 500 ended the trade just above the 1085 200 day moving average on the daily chart. Expect sideways trading as we push into Friday because we are still below the 144 day Fibonacci moving average of 1111. Until we break above this level do expect a confirmed rally or recovering especially throughout these low-volume trading summer months. We still believe that any positive news is considered a temporary rally as move into August which is considered the slowest trading month.

As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The volatility index is just above 30.00 as of today so traders and investors may rethink their short positions or continue retreat to safer assets.

However due to the low volume in the recent rally and liquidation of mutual fund investors due to frightening instances such as the ‘flash crash,’ European debt crisis and BP Oil Spill expect volatility will return and traders will prey and make money on both ends. Traders will buy when investors are fearful and sell when they are euphoric and confident.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1111: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1075: Natural Resistance Level

1074: 144, 200 Day Fibonacci Moving Average on 5 Minute Chart

1073: 200 Day Fibonacci Moving Average on 5 Minute Chart

1050: Natural Support Level

Friday Economic Calendar

Retail Sales / 8.30 EST

Consumer Sentiment / 9.55 EST

Business Inventories / 10.00 EST

Disclaimer

Day Trading Economic News Analysis: June 10, 2010

2010-06-09T18:31:00.004-04:00

Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

Today we got a slew of numbers as well as Ben Bernanke and the Beige Book. Ben Bernanke before the House Budget Committee stressed that housing and labor will weigh on our economy than the ongoing Eurozone deficit crisis. The Beige Book stated that ‘economic activity continued to improve.’

German Chancellor Angela Merkel said the time has come to withdraw the stimulus and learn the lessons from the crisis. This sent the markets lower after being positive on the day. We expected the markets will be in a tight trading range between 1075 and 1100 however the lower the indices trend the trading range decreases has well. We now expect to be within a trading range between 1025 and 1075.

On Wednesday the S&P 500 reached a high just above 1075 before falling back and ending the day at 1056. Tomorrow weekly jobless claims are expected as well as the BOE and ECB announcements on interest rates. Expect the dollar to move accordingly after those numbers are released. Unless any major new announcements the markets should be within a trading range between 1050 and 1075 tomorrow.

Tuesday we had a retracement to the 1050 area which we reached in early February. This second attempt could break this area due to the low volume trading during the summer months as well as the issues facing Europe sovereign debt and the BP oil crisis. We are trading below the 200 day moving average on the daily chart (1085) so expect any positive news to be a temporary rally as the volume dries up as me move along towards August – the slowest trading month.

As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The volatility index is above 30.00 as of so traders and investors may maintain their short positions and retreat to safer assets.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1111: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1075: Natural Resistance Level

1064: 55, 144, 200 Day Fibonacci Moving Average Convergence on 5 Minute Chart

1050: Natural Support Level

Thursday Economic Calendar

BOE Announcement / 7.00 EST

ECB Announcement / 7.45 EST

International Trade / 8.30 EST

Weekly Jobless Claims / 8.30 EST

Tim Geithner Speaks / 10.00 EST

Natural Gas Report / 10.30 EST

Disclaimer

Day Trading Economic News Analysis: S&P 500 June 9, 2010

2010-06-08T20:32:00.015-04:00

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S&P 500

Ben Bernanke will be testifying tomorrow before the Committee on the Budget, US House of Representatives however today he mentioned to be ‘cautious on the US recovery.’ The Beige Book will be released tomorrow however many believe that the FOMC will keep interest rates low for a while. The dollar lost ground to the euro due to purchases of equities that rallied the market.
Fears of the European debt crisis continues to mount however many traders and investors believe that the US will recover at a much faster pace.

We rallied above yesterday’s 144 day moving average on the 5 minute chart at 1058 so we expect to finish above this level. The S&P 500 took a breather today after two days of declines and rallied near the 200 day moving average of 1062 on the 5 minute. Expect the markets to be in a narrow trading range within these low volume trading months.
We expected the markets will be in a tight trading range between 1075 and 1100 however the lower the indices trend the trading range decreases has well. We now expect to be within a trading range between 1025 and 1075

On Thursday the 1071 level and 1075 will provide adequate resistance levels while the 1050 will provide a natural support level for the S&P 500. The 1071 was Tuesday’s previous high and the 1075 is the natural resistance level.

On Tuesday we had a retracement to the 1050 area which we reached in early February. This second attempt could break this area due to the low volume trading during the summer months as well as the issues facing Europe sovereign debt and the BP oil crisis. However we broke through the 1050 level only to rally at the end of the day to 1062.

We are trading below the 200 day moving average on the daily chart (1085) so expect any positive news to be a temporary rally as the volume dries up as me move along towards August – the slowest trading month.

As long as we stay above this level expect pessimism as we approach the slow summer months. Currently the VIX is above the 144 and 200 day moving averages on the daily chart. The volatility index is above 30.00 as of so traders and investors may maintain their short positions and retreat to safer assets.

Summary of Pivot and Technical Levels

1219: S&P 500 52 Week High

1111: 144 Day Fibonacci Moving Average on Daily Chart

1100: Natural Resistance Level

1090: Important Pivot Level

1085: 200 Day Fibonacci Moving Average on Daily Chart

1075: Natural Resistance Level

1063: 200 Day Fibonacci Moving Average on 5 Minute Chart

1058: 144 Day Fibonacci Moving Average on 5 Minute Chart

1050: Natural Support Level

Wednesday Economic Calendar

Mortgage Applications / 7.00 EST

Wholesale Trade / 10.00 EST

Petroleum Report / 10.30 EST

Beige Book / 2.00 EST

Ben Bernanke Speaking / 10.00 EST and 16.00 EST

Disclaimer