Wednesday, September 08, 2010

Market comments for Sept. 8th

The Dow fell about 107 points yesterday, but the more important piece of data was that the Put to Call ratio closed at 1.33. a level not seen since May 20 and 21st when the stock market lost over 400 points. Back then the struggle was for the Dow to stay over 10,000 in the short term. It failed and began the Dow's drop to 9800 at that time. Now we are at a similar place with the Dow closing yesterday at 10340, while starting the day at 10,446. Back on May 20th, the Dow was at 10,440 and closed at 10,068 and was the start of the decent to 9686 on July 2nd.

In pre-market today the market is pointed up as the Dow Futures are up 26 points and the S&P is up about 3 points. The Nikkei reacted to our market from yesterday and was down about 200 points in overnight trading. European markets are up about 20 points at this hour. It isn't a strong upward signal as they await our markets to open. 10 days before Options Expire for September.

Not much important forward looking data will be released today but there is some data. At 7:30am PST Crude Inventories will be released. Then at 11:00am PST notes from the last Fed meeting will be announced called the Beige Book. And at Noon, Consumer Credit will be reported. This will tell us if the Consumer is paying down debt or has stopped and started to spend. This is looking backwards as the data is for July and it is expected to come in at -5.5 Billion. To put this in perspective June came in at -1.3 Billion. So this indeed expects the Consumer to be paying off more debt and therefore taking more money out of play in stimulating our economy. Markets rarely move on this data but in this volatile market it is difficult to predict the direction of the reaction.

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