[US STOCK CLOSE] Bulls turned tail in afternoon selling as losses in banks, global-exposed consumer and industrials offset early optimism on massive govt stimulus in the making. That saw the Dow fall -1.5% while Nasdaq ended near flat with help from select tech and materials on gold gaining as store of value vs more Tsy selling on supply fears. Down stocks topped winners modestly but in more active flow. Sector action was mixed. Weak results from Kraft hurt consumer staples while Disney disappointed too. Energy stocks were whippy with oil testing below $40 but closing higher. Financials and industrials lost ground, with latter hurt on GE as weaker global economy hurts foreign-based revenue for like big caps. Banks suffered on mounting ire from Congress and Obama about use of TARP funds, with Tsy announced on executive pay rules. Data not helpful as ADP jobs gauge predicted another huge loss for Jan payrolls.
The [AUD/USD] was biddish for much of the Asian session as it rose to a high of 0.6540 before slipping back to 0.6490 ahead of the Aust retail sales and building approvals data. The pair recovered a tad above the 0.6500 lvl when the data came in mixed with retail sales coming in better than f/c while building approvals was worse than f/c. However, the pair was bushwhacked by sellers from around the 0.6470 level sending the pair tumbling to an o/n low of 0.6354 during the European session. The pair recovered back to the 0.6400 lvl during the early NY session to open this morning around the 0.6430 lvl. With Wall St still looking wobbly, the pair is likely to remain well below the 0.6500 handle this session. We prefer selling rallies towards yest high of 0.6500 for another test of the 0.6350 level. Buying orders at 0.6380 by a local and selling orders at 0.6480 by leveraged accounts will keep the range this session.
The [AUD/USD] was biddish for much of the Asian session as it rose to a high of 0.6540 before slipping back to 0.6490 ahead of the Aust retail sales and building approvals data. The pair recovered a tad above the 0.6500 lvl when the data came in mixed with retail sales coming in better than f/c while building approvals was worse than f/c. However, the pair was bushwhacked by sellers from around the 0.6470 level sending the pair tumbling to an o/n low of 0.6354 during the European session. The pair recovered back to the 0.6400 lvl during the early NY session to open this morning around the 0.6430 lvl. With Wall St still looking wobbly, the pair is likely to remain well below the 0.6500 handle this session. We prefer selling rallies towards yest high of 0.6500 for another test of the 0.6350 level. Buying orders at 0.6380 by a local and selling orders at 0.6480 by leveraged accounts will keep the range this session.
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