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Falling DOW

Eurozone economy grew tepid 0.3 pct in 4th quarter

By PAN PYLAS
AP Business Writer

(AP:LONDON) Europe's economic recovery failed to gather pace in the final three months of 2010, official figures showed Tuesday, amid heavy snow in a number of countries and a ramp up in austerity measures across the single currency bloc.

Eurostat, the EU's statistics office, reported that the 16 countries that were using the euro at the end of 2010 _ Estonia only joined in eurozone in January _ grew by 0.3 percent in the fourth quarter from the previous three month period.

Eurostat said that's below the 0.8 percent equivalent rate in the U.S. but better than the 0.3 percent decline in Japan.

The eurozone's growth rate was the same as the previous three month period and in line with forecasts. Germany and France, Europe's two biggest economies, grew less than anticipated _ Germany's 0.4 percent increase was modestly below expectations but France's 0.3 percent was half what was expected.

Further weighing on overall activity was the fact that two eurozone countries, Greece and Portugal, saw their economies contract as their governments imposed harsh spending cuts and tax increases to get their public finances into shape.

Greece, which received a euro110 billion ($148 billion) bailout from its partners last May, remained in a deep recession as its economy shrank by a further 1.4 percent during the fourth quarter. Figures for Ireland, the other eurozone country to need financial rescue, were not yet available.

Portugal, which is widely perceived to be the next most likely bailout candidate, posted a 0.3 percent decline, its first negative figure for a year. A country is not technically classified as being in recession unless it reports two consecutive quarters of falling output.

Despite the declines in Greece and Portugal, economic activity across the whole of the eurozone is expected to accelerate in the first quarter of 2011, if recent surveys are to be believed.

In its February survey, the ZEW institute reported Thursday that investors in Germany remain buoyant with more forecasting improving economic conditions over the coming six months than a renewed deterioration.

Eurostat also found that the wider 27-country EU grew by only 0.2 percent in the fourth quarter. The lower rate can be largely attributed to the surprise 0.5 percent contraction in Britain, reported last month.

 

Will it work?

krisluke      ( Date: 15-Feb-2011 13:04) Posted: US President Obama seeks corporate tax overhaul US President Barack Obama called on Congress to immediately embark on an overhaul of the US corporate tax code, as he laid out a US$3.730T budget request designed to bolster America’s standing in the Global economy and start shrinking its large fiscal gap. While acknowledging that tax reform could take several years, and is a difficult process, the White House said it was necessary to transform a system that “makes our businesses and our economy less competitive as a whole”. The budget proposal said the US should aim to eliminate special tax breaks and loopholes and use the savings to lower the corporate tax rate from its current level of 35%, one of the highest in the developed World. But it said that any reform should not add to US budget deficits, which could prove to be a sticking point with the business community. In addition, the administration did not offer any insight into which corporate tax incentives the White House would like to see cut, beyond certain tax breaks oil and gas companies and overseas profits that had previously been proposed and roundly rejected by US multinationals. There was no hint of the US moving towards a system of territorial taxation that does not impose levies on international earnings, a priority for many large business groups. President Obama’s budget request for Y 2012 marks a shift from an economic and fiscal policy agenda focused on stimulating the US economic recovery to making targeted investments in certain areas while keeping government spending under control in order to start reducing budget deficits. In fact, it proposes cutting deficits by US$1.1T over the next decade, achieving a temporarily sustainable debt-to-gross domestic product ratio of 3.2% by Y 2015. Eventually the USA’s fiscal outlook would start deteriorating again because of the escalating costs of the largest government pension and healthcare programs, which are not tackled in any significant way in the budget. These issues were addressed by a bi-partisan fiscal commission set up by Mr Obama last year, which recommended much more sweeping deficit reduction, worth US$3.9T, over the next 10 yrs. But few of its proposals, with the exception of the call for corporate tax reform, were embraced by the administration in Monday’s budget proposal.—Paul A. Ebeling, Jnr. www.livetradingnews.com

 

BoE's King: Inflation Likely To Pick Up Further

(RTTNews) - UK inflation is likely to continue to pick up to somewhere between 4% and 5% over the next few months, Bank of England Governor Mervyn King said in his open letter to the Chancellor on Tuesday.

That primarily reflects further pass through from recent increases in world commodity and energy prices. Inflation is likely to remain above the 2% target for this year, before falling back in 2012, he said.

King said that the Monetary Policy Committee judges that attempting to bring inflation back to the target quickly risks generating undesirable volatility in output and would raise the chances of undershooting the target in the medium term.

Annual inflation rose to 4% in January from 3.7% in December, the Office for National Statistics said today.

For comments and feedback: contact editorial@rttnews.com

 

Deficit is biggest as share of economy since 1945

By JEANNINE AVERSA and CHRISTOPHER S. RUGABER
AP Economics Writers

(AP:WASHINGTON) Not since World War II has the federal budget deficit made up such a big chunk of the U.S. economy. And within two or three years, economists fear the result could be sharply higher interest rates that would slow economic growth.

The budget plan President Barack Obama sent Congress on Monday foresees a record deficit of $1.65 trillion this year. That would be just under 11 percent of the $14 trillion economy _ the largest proportion since 1945, when wartime spending swelled the deficit to 21.5 percent of U.S. gross domestic product.

The danger is that a persistently large gap in the budget could threaten the economy. Investors would see lending their money to the U.S. as riskier. So they'd demand higher returns to do it. Or they'd simply put their cash elsewhere. Interest rates on mortgages and other debt would rise as a result.

And if borrowing turned more expensive, people and businesses might scale back their spending. That would weaken an economy still struggling to lower unemployment, revive real estate prices and restore corporate and consumer confidence.

So far, it hasn't happened. It's still cheap for the government to borrow money and finance deficits. But economists fear the domino effect if all that changes.

" The moment when markets react negatively to our budget deficit cannot be known in advance, but we are absolutely in the danger zone," says Marvin Goodfriend, an economics professor at Carnegie Mellon University's Tepper School of Business.

Higher interest rates would also raise interest payments on the federal debt. It would be costlier for the government to finance its operations. The interest payments themselves could then make the deficit increase, creating a vicious cycle.

Under the projections in Obama's budget, the deficit as a share of the overall economy would narrow from 10.9 percent this year to 7 percent next year and eventually to 2.9 percent by the 2018 fiscal year.

But after that, in the remaining years of this decade, the deficit would widen slightly as a percentage of the economy. It would average about 3.1 percent because of escalating costs for programs like Social Security and Medicare as baby boomers age and receive benefits.

Economists generally say cutting the deficit to about 3 percent or less of the economy would be healthy. Deficits at that level are considered " sustainable" _ meaning they could be easily financed and wouldn't make investors nervous about the government's finances.

Most economists don't think the deficit should be cut deeply now. They say the economy remains so fragile _ unemployment is at 9 percent _ that it needs big government spending to invigorate growth.

In this camp is Federal Reserve Chairman Ben Bernanke. He's argued that now isn't the time to slash government spending or raise taxes. Instead, Bernanke has urged Congress and the White House to preserve federal stimulus _ including tax cuts _ in the short run but draft a plan to reduce the deficit over the long run.

A presidential commission last year made recommendations that Bernanke and other economists say could help curb the deficit over the long term. Its suggestions included raising the Social Security retirement age and reducing future increases in benefits. It also proposed increasing the gasoline tax and eliminating or scaling back tax breaks, like the mortgage interest deduction claimed by many Americans.

Obama embraced none of these proposals in his budget. But his plan is designed to cut $1.1 trillion from the deficit over the next decade, two-thirds of it from spending cuts. The rest would come from tax increases, such as limiting the deductions for high-income taxpayers.

In Bernanke's view, a long-term plan to reduce future deficits would mean lower long-term interest rates and increased consumer and business confidence.

For months, though, longer-term rates have been creeping up, driven by prospects of stronger growth and concerns about higher inflation. The yield on the 10-year Treasury note is now 3.61 percent. That's up sharply from 2.48 percent in early November.

That increase is making other loans, including mortgages, more expensive. The average rate for a 30-year fixed mortgage just rose above 5 percent for the first time since April.

Rates are still extremely low by historical standards. In 1983, during Ronald Reagan's first presidential term, the deficit soared to $208 billion, about 6 percent of the economy at the time. The rate on the 10-year note topped 10 percent. And getting a 30-year mortgage meant paying 13 percent.

Economists say that if investors trust that Congress and the White House will curb budget deficits over the long haul, interest rates could stabilize _ even if deficits exceed $1 trillion over the next year or two. But if investors lose confidence that Washington policymakers can curb the deficits, rates could rise sharply.

" It's all about perception," says Lou Crandall, chief economist at Wrightson ICAP, a research firm.

So far, China, the biggest buyer of U.S. debt, and other countries have maintained their appetites for Treasurys. Foreign demand for Treasury debt has helped keep U.S. interest rates historically low.

The reason is that the United States is still considered a haven for many foreign investors. That point was underscored by Europe's debt crisis last year, when money poured into dollar-denominated Treasurys.

If the United States had to finance its debt through U.S. investors alone, the government, along with American companies and consumers, would have to pay higher rates.

Last year's budget deficit totaled $1.3 trillion. That was just under 9 percent of U.S. economic activity. The first time the deficit topped $1 trillion was in 2009.

The growth of U.S. budget deficits has reflected the costs of the wars in Iraq and Afghanistan, the continuation of broad tax cuts, the worst recession since the 1930s and a surge in spending on Social Security, Medicare and the military. The recession prompted higher government spending to stimulate the economy and cushion the effects of the downturn. It also reduced tax revenue.

The Organization for Economic Cooperation and Development estimates that the United States' deficit as a share of the U.S. economy will be smaller _ around 8.8 percent_ than the president's budget estimates.

Still, that would be a higher figure than for other major industrialized countries. The OECD projects, for example, that Britain's deficit this year will be about 8.1 percent of its economy. Germany's deficit is expected to make up 2.9 percent of its economy, Japan's 7.5 percent.

" So far, investors haven't been bothered by large U.S. budget deficits," says Jim O'Sullivan, economist at MF Global, an investment firm. " The fear is that could suddenly change. It's not clear whether investors will remain patient once the U.S. recovery is on track."

 

UK consumer inflation rate rises to 4 percent

9  minutes ago

By ROBERT BARR
Associated Press

(AP:LONDON) Britain's key inflation rate rose to 4 percent in January, according to official statisticians Tuesday, making it double the official target and adding pressure on the Bank of England to hike interest rates sooner than expected.

The report of higher consumer prices was in line with market forecasts and up from 3.7 percent a month earlier. The Bank of England's governor, Mervyn King, has argued that higher interest rates would be ineffective against inflation which he attributes to external factors including rising prices for energy and commodities.

However, at least two members of the nine-member rate-setting Monetary Policy Committee _ which got an advance glimpse of the figures for last week's policy meeting _ backed a modest hike in the key lending rate from a record low of 0.5 percent to 0.75 percent. King will have to write a letter to the government, to be published later Tuesday, explaining why the inflation rate remains above target.

The largest factors in the latest increase were the higher price of oil and an increase in the broad-based sales tax from 17.5 percent to 20 percent, the Office for National Statistics said. Excluding the tax hike, consumer inflation rose from 2 percent in December to 2.4 percent in January, the agency said.

Other upward pressures came from restaurant meals, furniture, alcoholic beverages and the cost of vehicles, the agency said. Downward pressures came in the prices of recreation and culture, banking services, clothing and footwear.

" The data do nothing to change the dilemma facing the Bank, whereby short-term price pressures are encouraging some members of the Monetary Policy Committee to hike interest rates, but others fear a rate rise will threaten the fragile recovery," said Chris Williamson, chief economist at Markit.

Worries grew about the recovery following a recent report that the economy shranky by 0.5 percent in the fourth quarter.

" The fact that the MPC held rates last week despite seeing these numbers suggests that, for now, the majority of committee members are still of the same mind," said Jonathan Loynes, chief European economist at Capital Economics. He added that analysts will be looking for further clues on Wednesday when the Bank publishes its quarterly report on the inflation outlook.

The ONS said the wider retail prices index rose from 4.8 percent in December to 5.1 percent in January. The RPI excluding mortgage interest payments rose to 5.1 percent from 4.7 percent.

 

Ahead of the Bell: Business Inventories

12 minutes ago

(AP:WASHINGTON) Businesses likely added to their inventories for a 12th consecutive month in December, signaling further gains in production at U.S. factories.

The consensus of economists is that businesses increase their inventories 0.6 percent in December. The Commerce Department is scheduled to release the new report at 10 a.m. EST Tuesday.

Inventories were up 0.2 percent in November, which had been the smallest gain since last May. But total business sales were up 1.2 percent in November after an even bigger 1.5 percent October increase.

Economists believe inventories will keep rising as long as sales remain strong and businesses have confidence that demand for their products will remain high. The rising demand is encouraging businesses to keep restocking store shelves and this activity has supported increased product at the nation's factories.

The November rise in inventories pushed them to $1.42 trillion, up 7.7 percent from the recent low of $1.32 trillion hit in September 2009.

Strong gains in both inventories and sales over the past year have been good news for many industries, which have been able to boost production and hire more workers.

Manufacturing has been one of the standout performers since the recession ended in June 2009.

 

US President Obama seeks corporate tax overhaul

US President Barack Obama called on Congress to immediately embark on an overhaul of the US corporate tax code, as he laid out a US$3.730T budget request designed to bolster America’s standing in the Global economy and start shrinking its large fiscal gap.

While acknowledging that tax reform could take several years, and is a difficult process, the White House said it was necessary to transform a system that “makes our businesses and our economy less competitive as a whole”.

The budget proposal said the US should aim to eliminate special tax breaks and loopholes and use the savings to lower the corporate tax rate from its current level of 35%, one of the highest in the developed World. But it said that any reform should not add to US budget deficits, which could prove to be a sticking point with the business community.

In addition, the administration did not offer any insight into which corporate tax incentives the White House would like to see cut, beyond certain tax breaks oil and gas companies and overseas profits that had previously been proposed and roundly rejected by US multinationals.

There was no hint of the US moving towards a system of territorial taxation that does not impose levies on international earnings, a priority for many large business groups.

President Obama’s budget request for Y 2012 marks a shift from an economic and fiscal policy agenda focused on stimulating the US economic recovery to making targeted investments in certain areas while keeping government spending under control in order to start reducing budget deficits.

In fact, it proposes cutting deficits by US$1.1T over the next decade, achieving a temporarily sustainable debt-to-gross domestic product ratio of 3.2% by Y 2015.

Eventually the USA’s fiscal outlook would start deteriorating again because of the escalating costs of the largest government pension and healthcare programs, which are not tackled in any significant way in the budget.

These issues were addressed by a bi-partisan fiscal commission set up by Mr Obama last year, which recommended much more sweeping deficit reduction, worth US$3.9T, over the next 10 yrs.

But few of its proposals, with the exception of the call for corporate tax reform, were embraced by the administration in Monday’s budget proposal.—Paul A. Ebeling, Jnr. www.livetradingnews.com

 

Obama Calls For Continued Infrastructure In Federal Budget

(RTTNews) -  President Barack Obama Monday unveiled his proposal for the next federal budget.

Speaking at a middle school in Maryland, Obama emphasized that despite the federal deficit, investments in education and other areas of the economy were still critical.

" People are worried about how we're going to be able to pay for things in the future," he said. " Just like in your own households, if things get a little tight you may stop going out to dinner or stop going to the movies, but you're still going to make sure that you're paying for the things that are really important like heat or fixing the roof or your parents are setting money aside for your college education."

He added, " We've got to do that same thing as a country."

Obama said that investments, such as in high-speed rail, high-speed internet and education would be critical to ensuring that the U.S. could compete in the global marketplace.

" If we out-build and out-innovate and out-educate, as well as out-hustle the rest of the world, the jobs and industries of our time will take root here in the United States," he said. " Our people will prosper and our country will succeed."

However, Obama also acknowledged the need to tackle the growing federal deficit, proposing a domestic discretionary spending freeze that he said would cut more than $400 billion from the deficit over the next decade.

 

DOW due for correction, isit ??. http://money.cnn.com/

BREAKING NEWS--Obama unveils $3.7 trillion budget for 2012, including program cuts to reduce deficits by $1.1 trillion over a decade.

 

US market Dividend + M& A(shiok) + buyback drifting up, says no growth, you believe or not (WTF)

dj looks support at 12250 points, fear factor indicator not fearfully on current chart.

 

 

Rio Tinto Chief sees no dip in Copper price for now

Rio Tinto PLC (NYSE:RIO) 74.27, +0.18, +0.24%, CEO, Tom Albanese forecasts continued volatility in Iron Ore prices, but said extra supply coming on line starting in Y 2013 should stabilize the market in the future, according to an interview over the weekend with the Australian Broadcasting Corp.’s Inside Business program.

Albanese also said he expects Copper prices, which have been at record levels this year, to remain high. “I think we will see a continued period of strong copper pricing, largely because many of the large mines, including our own, are seeing declining grades, and deepening pits,” Albanese said.

“But you will see new mines like our own in Oyu Tolgoi in Mongolia come on line. We are working on several new projects around the World and I know, certainly our competitors are working on their own projects too. So we will see new Copper supply coming in and that will begin again balancing out with demand.” —Paul A. Ebeling, Jnr. www.livetradingnews.com

 

Paul Ebeling Market Report, NYX, PDE, QQQQ

NYSE Euronext (NYSE:NYX), Pride International (NYSE:PDE) , PowerShares QQQ Trust, Series 1 (ETF)
NASDAQ:QQQQ

Go back to November and you will see that the market never reached this level when it started the last correction, and it has not corrected since it has been down here.

What to expect this week and down the line…

There is a lot of data out this week, the kind of news that may help drive the market since earnings season is slowing, and stocks may be looking for another reason to move up.

The recent news has been terrific couple that to a earnings season that surprised to the upside beating some tough comps.

The US economy continues to improve, and there is hope showing among the people, but what about the market?

When considering the S& P 500, the talk is can it move higher. When I look it is the 2nd leg of the breakout, and so there can be 1, 2 and perhaps 3 more legs on this move that will take it through the end of 2011 on the plus side. That is not to say I am over Bullish, just saying what it looks like from my work.

Markets often run further than people believe they can or will. But you always have to be alert and nimble in the near term.

Stocks are moving higher. There is lots of money coming into this market, and it looks like some of the retail investors unlocking money and sending to their brokers or their mutual funds, saying put it to work. And there are many good stocks with great bases that have not yet joined the party.

So be on the lookout for those that have good Risk-Reward ratios for upside plays, and take gains when they run out of momentum.

That is how to play it, on the lookout for good Northside moves, they are there, and do not say things cannot keep going up, this is a Bull Market. They can, and we see it. Remember, the Bull is just the opposite of the Bear.

Savvy players play the trend till it ends, and all the way tightening the stops, and not make risky bets.

Remember, always take what the market gives.

 

G-20 identifies 2 steps in addressing Global imbalances

Finance Ministers from the World’s 20 biggest developed and developing economies (G-20) may agree next week on a 2 stage approach to tackling Global economic imbalances, a European Union document stated.

The imbalances, reflected in the current account balance, private and public savings, debt and capital flows, can trigger or augment crises, destabilizing the World economy. G-20 leaders agreed in November to find a way to get a handle on them.

The 1st step is to identify the imbalances using an agreed set of economic indicators and benchmark values.

The 2nd step is to analyze the causes of the imbalances, and possibly make policy recommendations on how to deal with them.

The 2 step approach has been agreed on by G-20 deputy finance ministers who met in Paris for a preparatory meeting on January 14-15, the EU terms-of-reference document for EU G-20 delegations to the Paris meeting on February 18-19 showed. “The EU strongly supports the agreement reached by the deputies,” the document said. “The 2 step approach will add structure and focus to the work of the G-20.”

There is no agreement yet in the G-20 on the full set of indicators to be used for the assessment of imbalances, this is what G-20 finance ministers are set to agree on in Paris.

“The current account balance, rather than the trade balance should be a leading indicator as it provides a more complete and accurate picture of external sustainability,” said the EU terms-of-reference document in an apparent reference to China, which a G-20 source said preferred the trade balance measure.

A G-20 source said that while the Paris meeting is likely to agree on which indicators to include in the assessments, their values, which would trigger a more in-depth analysis, would be decided in April at a G-20 meeting in Washington D.C.

The G-20 Finance Ministers will also discuss in Paris a reform of the International monetary system, including capital flows, International reserve assets and financial safety nets.

Investment flows can help poorer countries develop and grow, but they have been blamed for overheating economies and driving up inflation. They can also become a destabilizing force when investors suddenly withdraw the money.

Over the past year fast growing emerging markets such as Brazil have been the biggest recipients of these capital in flows, and some nations have taken steps, such as raising taxes, to try to manage the flow.

“The EU believes in the benefits of the free movement of capital, and sees with some concern the increasing use of temporary controls,” the EU terms-of-reference document said.—Paul A. Ebeling, Jnr. www.livetradingnews.com

 

Obama proposes budget that will cut the deficit by US$1.1 over 10 yrs

US President Barack Obama’s budget plan for Y 2012 slashes the deficit by US$1.1T over 10 yrs, officials said Sunday, but Republicans were unimpressed, and vowed to push for deeper spending cuts.

White House budget director Jack Lew said the proposal to be presened Monday puts the government on track to halve the budget deficit by the end of Obama’s first term in office, which extends through Y 2012.

“We are reducing programs that are important programs that we care about, and we’re doing what every family does when it sits around its kitchen table: we’re making the choices about what do we need for the future,” Lew said on CNN.

Republicans, who control the House of Representatives, said Obama’s proposed spending cuts would not do enough to rein in the growing federal deficit and promised their own plan would go further.

“He’s going to present a budget tomorrow that will continue to destroy jobs by spending too much, borrowing too much and taxing too much,” House of Representatives Speaker John Boehner said Sunday on NBC’s “Meet the Press.”

The budget proposal by Obama kicks off what is certain to be a contentious debate with Republicans, whose big gains in November’s elections were fueled by conservative Tea Party activists who wanted to cut spending and reduce the size of government.

Republican House Budget Committee chairman Paul Ryan would not say whether Republicans would oppose Obama’s plan until he saw the full text. “We’ll see the details of this budget tomorrow, but it looks like to me that it is going to be very small on spending discipline and a lot of new spending so-called investments,” Ryan said on “Fox News Sunday.” “Borrowing and spending is not the way to prosperity. Today’s deficits means tomorrow’s tax increases, and that costs jobs,” he said.

The US deficit is forecast to reach US$1.48T this fiscal year, or 9.8% of US GDP. This would be down from 10.0% of GDP in Y 2010, but still very high for the United States on a historical basis.

TF-Y 2012 begins on October 1.

The White House intends to get 66% of the US$1.1T in savings from spending cuts and 33% from tax revenues, including closing several tax loopholes, according to sources familiar with the budget proposal.

That figure is higher than the US$400B in savings that Obama promised in his State of the Union address in a 5 yr spending freeze on non-discretionary domestic spending.

“The challenge we have is to live within our means but also invest in the future,” Lew said, adding “tough tradeoffs” have to be made to achieve that goal.—Paul A. Ebeling, Jnr. www.livetradingnews.com

 

The US Market Sentiment + Bulls vs Bears

MARKET SENTIMENT

Are you watching the VIX?

The VIX has moved back down to the level it hit 3 times in the past 90 days. The market has continued to the Northside, as the S& P 500 made a pretty straight move to the upside, and has not sold off.

The VIX is telling us that there is no real volatility here. Volatility can indicate there could be a pullback coming. The market does need a correction, and many are saying it is over due.

Go back to November and you will see that the market never reached this level when it started the last correction,and it has not corrected since it has been down here.

The market is extended (aka overbought) and with the VIX hitting those lows, it may be saying the correction from this charge to the Northside is just ahead, but I do not believe that it issaying anything about the rally in the long-term. The base is good and a test is due and healthy.

Remember, Volatility can remain low for a long time, and just as long as it is declining, as the market is rallying, there is no major sell-off on the horizon IMO.

1. VIX: 15.69 -0.4

2. VXN: 17.18 -0.73

3. VXO: 14.27 -0.36

4. Put/Call Ratio (CBOE): 0.82 +0.05

Bulls vs. Bears:

The Bulls are at 53.4% vs 52.7% last week. The Bulls are rising but below the 55.1% mark from 3 weeks ago, and down from 58.8% high on this leg. This is a high level, but below the 5 yr high at 62.0. The Bulls are fading from the level considered Bearish. Start to be careful and watch for breakdowns in here. There is a lot of liquidity flowing into the market now, and that can continue the move the market North despite excess Bullishness.

For your reference: to be seriously Bearish it needs to get up to the 60% to 65% mark.

The Bears are at 23.3% vs 22.0% last week, the Bulls may be getting stronger, but the Bears are not as sanguine about the market’s prospects. They remain below the 28.3% level from last September, but up from the 19.1% level where they frolicked for a month, and well below the 35% mark, above which is considered Bullish for the market overall.

For your reference: a break above the 35% is considered Bullish, they tapped at a high of 47.2% in a past run. Bearishness hit a 5 yr high at 54.4% the last week of October 2008. The move over 50 took Bearish sentiment to its highest level since Y 1995.

krisluke      ( Date: 14-Feb-2011 22:35) Posted: a weak opening (first 5 minutes) from US market.

 

a weak opening (first 5 minutes) from US market.

 

 

At least, this president was not a  WAR fanatic!  No War is peace.

krisluke      ( Date: 12-Feb-2011 00:22) Posted: President of egypt had resigned. I read it from marketwatch   nOW pray ST Index Monday less selling pressure.   US MARKET INDEX TREND> > > Stock market tracking this morning prior to opening bell revealed that major indexes in the United States were positioned in negative territory. Political turmoil in Egypt was helping to put a damper on stock action. This, paired with some of the negative earnings reports yesterday, pushed the Dow into the red as of yesterday’s close for the first time after multiple days of closing in the green. As of the half way point of today’s trading session in the United States, market tracking reveals that the major index composites are pushing higher. The Dow Jones Industrial, Nasdaq and S& P 500 are all trending in the green as we approach the mid-day point of the last trading session for this week. Stocks are edging higher as positive sentiment is boosting investor optimism. According to the University of Michigan’s Consumer Sentiment report, consumer sentiment strengthened in February. The reported data revealed that the index rose to a preliminary reading of 75.1 which was up from January’s reading of 74.2. The report was positive in that it was higher than the prior sentiment posting a month prior, but expectations were a bit higher as economists had been anticipating the index to rise four tenths more. Regardless of this expectation, it was still a positive posting and helped index values trend green as of mid-day. Market tracking showed that the Dow Jones was higher by .28 percent at 12,263.65 at this point. The Nasdaq was higher by .31 percent at 2,789.92. The S& P 500 was green by .39 percent at 1,327.04 as mid-day approached. Author: Frank Matto

 

Inflow of fund back to Asian and emerging country regions commence, while Dow in correction!

 

STOCK INDEXES & MARKETS (Technical)

The March NASDAQ 100 closed higher on Friday as it extends this winter's rally. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this winter's rally, weekly resistance crossing at 2477.50 is the next upside target. Closes below the 20-day moving average crossing at 2319.80 would confirm that a short-term top has been posted. First resistance is today's high crossing at 2379.75. Second resistance is weekly resistance crossing at 2477.50. First support is the 10-day moving average crossing at 2339.27. Second support is the 20-day moving average crossing at 2319.88.

The March S& P 500 index closed higher on Friday as it extends the rally off last August's low. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this winter's rally, the 75% retracement level of the 2008-2009-decline crossing at 1356.30 is the next upside target. Closes below the 20-day moving average crossing at 1297.70 would confirm that a short-term top has been posted. First resistance is today's high crossing at 1327.70. Second resistance is the 75% retracement level of the 2008-2009-decline crossing at 1356.30. First support is the 10-day moving average crossing at 1309.84. Second support is the 20-day moving average crossing at 1297.70.

The Dow closed higher on Friday as it extends this winter's rally. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If the Dow extends this winter's rally, the 75% retracement level of the 2007-2009-decline crossing at 12,289 is the next upside target. Closes below the 20-day moving average crossing at 12,008 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 12,278. Second resistance is the 75% retracement level of the 2007-2009-decline crossing at 12,289. First support is the 10-day moving average crossing at 12,125. Second support is the 20-day moving average crossing at 12,008.