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

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

* 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

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.

All Right Reserved TraderMongers.com © 2010

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

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.

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

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

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.

All Right Reserved TraderMongers.com © 2010

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

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.

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

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

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.

All Right Reserved TraderMongers.com © 2010

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

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 US 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.

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

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

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.

All Right Reserved TraderMongers.com © 2010

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

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

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.

All Right Reserved TraderMongers.com © 2010