Dow Jones

Broke and tested resistance.

DJ M1

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US EQUITY WRAP

Equities finished lower today for the first time this week, with risk-aversion seen across the board. All 10 sectors in the S&P 500 finished in negative territory, with particular weakness seen in Oil and Gas, although Banks finished in the positive after Berkshire Hathaway’s Buffet announced they were to invest USD 5bln in the Bank of America (BAC). Pre-market their shares rose by up to 27%, then paring back some of those gains, finishing up 9.44% at the closing bell with 854 million shares traded in the most active day since December 2009. Out-performance was also seen in AOL (+8.8%) after news they met with top names in mergers and acquisitions. Poor unemployment data in the form of initial jobless claims out of the US also weighed upon bearish sentiment, and the latter half of the session saw low volumes as markets look ahead to the well advertised and eagerly awaited Bernanke speech tomorrow. At the closing bell the DJIA closed down 1.52% at 11148.84, S&P 500 down 1.56% at 1159.27 and NASDAQ 100 down 1.95% at 2419.63. Highest stock option volumes were seen in BAC, PFE, C and GS.

Source: RANsquawk

Zerohedge Writes: Here Are Wall Street's Expectations For Tomorrow, As Goldman Makes The Case For USD 1tln In QE3

“Taken together, our analysis suggests that QE3 is unlikely to be a panacea for growth. Nonetheless, our estimates suggests that $1trn of asset purchases–or an equivalent increase in the duration of the Fed’s balance sheet–might increase GDP growth by up to 0.5 percentage point in the first year after any announcement of QE3.
http://www.zerohedge.com/news/here-a...1-trillion-qe3

Source: ZeroHedge

DJ M1

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Currently respecting the ascending trend line. Resistance at the daily R1.

DJ M1

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US EQUITY WRAP

Equities finished in positive territory with risk-appetite seen across the markets after better than expected US personal spending. Volumes have been low today and the session subdued as UK participants enjoy a market holiday and traders in New York recover from Hurricane Irene. Today was one of the lowest volumes seen on the New York Stock Exchange seen so far this year at 514mln shares traded. Out-performance was seen in the financial sector, buoyed by news of a merger of two Greek banks, Eurobank and Alpha-bank, earlier in the session. In terms of individual stocks, out-performance was seen in Bank of America (8.12%) after they agreed to sell USD 13.1bln shares in China Construction Bank. Highest option volumes of individual stocks were McDonalds, Lorillard and Allstate corp. In the S&P 500 all 10 sectors finished in positive territory, lead by Financials (3.72%) and Basic Materials (3.41%) with under-performance seen in Telecommunications (1.06%) and Utilities (+1.90%). At the closing bell the DJIA closed up 2.24% at 11536.98, S&P 500 up 2.82% at 1209.93 and NASDAQ 100 showing the largest gains up 3.31% at 2561.98.

Source: RANsquawk

DJ M1

Hey guys,would like a pullback to around the lower blue box
to buy for a run up to the other blue box,lets see how she goes.
4 hr chart shows it clearest,might take a few days to play out.
Need to watch the light blue channel line for PA,it just might hold the fall
to the blue box.

Looks like the light blue channel line is going to hold and no i
didn't bloody get in on the long side,looking for a pullback but it's
looking strong,might not bother till tomorrow.

US NYSE Imbalances - around USD 400mln on the buy side

Source:MrTopstep/RANsquawk

So the light blue channel held it,i never got a tradable pullback
and here it is at the end of the day well on it's way to my target,
never mind,will look for a pullback to the light blue line again tomorrow
for an entry.

That can be very tradable at times,looks like some offers
have shown up to match the buy side this time though.

Yeah, interesting to see we got hammered at the end of the session.

DJ M1

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Yes mate,once the shorts got out down we went.lol.
Would like a good pullback so we could get a better
run at this topside.

Nice pullback to the blue line just now and good strong reaction up from it,
missed the up move today and didn't feel like playing the down move,was short Fiber all afternoon,my main weapon of choice and wanted to keep a close eye
on it,end of the month and all that.
Speaking of end of the month,Dow looks like there's more upside in her next month,still mainly looking for longs.

US NYSE Imbalances - around USD 2bln on buy side, 27/30 DJIA on buy side

Source: MrTopstep/RANsquawk

Holding the line nicely thismorning but sitting on hands
untill the news comes out,just feel there might be a lower
price to get long,time will tell.

Looks like the pullback is on now but thinking i'm
done for the week,NFP and all that.

4 hr looks like she's trying to get back into that channel,
or will it become resistance when we get up to it?

Moving well today,held inside the channel,been scalping long,
done for now,might be coming up to some resistance.
Might be wrong but feels like some of the Euro to Dollar trade
is now flowing out of the Dollar and into some stocks.

Obama is looking to inject over $300 billion to spark job growth next year. He mentioned that it would be done through tax cuts, direct aid from state and local governments, and from infrastructure spending. Tomorrow he will go to Congress for support and also mentioned that anyone making under $200,000 could be eligible for tax cuts. Unemployment insurance could be given to train workers so that employers do not incur the costs. (1) This should have been done 2 years ago! This is not a surprise due to the fact that elections are coming up and Obama's numbers are down. Everyone knows that the more jobs there are the more money people will have to spend. This idea has been around for decades!

Yahoo fired their CEO, Carol Bartz after her 2 1/2 year reign. Yahoo may take bold action to grow. There is talk that Yahoo may purchase Hulu.com or sell its 43% stake in Alibaba Group. (2) The company is reviewing all aspects to see where changes can be made and is not happy that the stock price has been lethargic. Athens and Rome announced how they can to go about fixing their budget deficits. One way, is to tax those who make over $705,000 an extra 3% which, may create over $35 million euros next year and 2.5 times that amount in 2013. There is a minimum of 130 days before this can be approved. This might be a negative for the markets. (3) The markets could jump early on this news but once it sinks in that these measure could take 5 months the market might sell off a little bit. On the open it might be worth testing the upside to see if a rally ensues.

Best Trade to you!

If we can break above 11135 we could move very fast to 11300,
guess thats stating the bleeding obvious though.

This is what the hourly looks like,nice bid under it for now.