Daily Market Analysis

Discussion in 'Trading' started by IRIStrader, Oct 26, 2010.

  1. "Consumer Confidence lifted and luxury sales booming, OCT 26, 2010 Midday-Report"
    by IRISTrader

    U.S. equities market looked weak at opening as the dollar got strengthened. In addition to that
    housing data did not give investors any reasons to cheer on Tuesday. The Standard & Poor/Case-
    -Shiller reported a rise of +1.7% for the average price of a single home for the month of August.
    A Bloomberg survey said that Wall Street economists were expecting the data to be up +2.1%.

    GOOD NEWS FOR THE BULLS, at 10 AM EST, the Conference Board lightened up investors'
    mood with a rosier report. Consumer confidence for the month of October rose to 50.2; this
    showed a great improvement from September data at 48.6. Economists expected a 50
    reading on the average, in according to Market-Watch Research.


    Ken Goldstein, an economist at the Conference Board stated that consumers are still
    worrying about the high unemployment rate. Brent Wilsey, President of Wilsey Asset
    Management believed the consumer spending is a better indicator of economy recovery
    than consumer confidence index. Both Goldstein and Wilsey said the consumer spending
    data after the Christmas holidays and midterm election might be a little troublesome.
    These data will be watched closely by economists to determine the true health of economy.

    While economists continue with their usual cautious tones, consumers are on a shopping
    spree with luxury goods. Coach Inc. reported a better-than-expected earning report on
    Tuesday; COH shares up +10.41% to a new 52 weeks high at $49.33 by 11:23AM EST.
    Tiffany & Co shares also went to a fresh new 52 weeks high at $52.50, up %1.28. According
    to The Street.com, there is a report by Bain & Co., a global consulting firm, predicting
    a phenomenon growth of +10% for luxury sector for 2010. This is an inspiring news since
    there was a decline of -9% for luxury products sale in 2009.

    For the short term, the S&P 500 has strong supports at EMA(8)= 1176.58 and EMA(21)=1165.69.
    With good earning season upon us, there is a very likely chance that the market would take
    out the recent high at 1196.14 and hit the psychological level at 1200. We would trade long
    ONLY stocks that have a better-than-expected earning data.


    Best regards to all, and good luck in your trading.
    Disclosure: No positions at the time of writing.