Market comments for Sept. 9th, 2011

Many aren't sure about whether the market will close down or rally later today. You can bet that because of what's happening in Europe on the debt crisis and because it it the 9/11 10th anniversary, it will close down. Add the fact that there is a terrorist warning and you have a recipe for many to dump stocks today. The ECB has confirmed the resignation of its Chief Economist J. Stark over issues on Eurobonds. This caused markets in Europe to drop sharply. Mr. Stark, one of the ECB's most outspoken anti-inflation "hawks" had opposed the ECB's decision last month to reactivate its government bond purchase program, as did the head of Germany's central bank, Jens Weidmann. To read more on this from the Wall St. Journal Europe, click here.

In Financial news, Consumer credit increased in July according to data released yesterday. For a context, June's data showed Consumer Credit at $11.3 Billion. Expectations were for this to be down to $5.0 Billion for July. Instead July's number came in at $12.0 Billion.

Today's release of Wholesale Inventories showed an increase of 0.8%, Expectations were for a 0.7% number for July. June's data came in at 0.6%.

Fed Chairman Bernanke did not reassure markets yesterday. Many are looking for the Fed to announce a QE3, but so far they haven't.

President Obama gave his fiery job's speech last night to Congress. It was one of his best speeches on this topic of his Presidency. The real question is whether any real action will come out of the speech and get approved by this Republican controlled Congress.

Market comment for Nov. 9th

In the first several hours of trading this morning the Put to Call ratio was 0.59 and 0.60, which again is relatively low for the past 7 months. The markets are negative at this time but not by a lot. The Dow is down 35 points as I type this. This morning Wholesale Inventories data for Sept. was released. It was up 1.5% while expectations were for 0.6%. The month of August was revised upwards as well from a reading of 0.8% to 1.2%, which means inventories are building.

Yesterday's Dow candlestick pattern was a Hammer, which usually means a reversal to a trend. This is consistent with the Put to Call ratio going low and signaling a sell reading. Additionally, Insider Selling has increased as well.

Market comments for Sept. 7th

It's a quiet day today, with low volume, but the VIX is up almost 10% in early trading. No news on economic data is to be released today but the main 2 pieces of data to pay attention to this week is the Initial Jobless Claims on Thursday as well as the Trade Balance and on Friday the release of Wholesale Inventories for July. The Trade Balance and Wholesale Inventories data are both backward looking data and therefore not as relevant in our concerns. But the Initial Jobless Claims is relevant as it is current data.

There are only 11 days remaining before Options Expiration for Sept. on Sept. 17th.