US Markets: The US markets opened lackluster on Monday morning and remained in profit booking mode throughout the weak. Investor sentiment was jittery on the back of better than expected domestic data thereby reviving possibility of an early rate hike by US Federal Reserve and geo-political headwinds. On the macroeconomic data front, a report from the US Commerce Department showed that new home sales grew 7.8% to an annual rate of 539,000 in February (analyst expected it at 462,000). US consumer price index increased up 0.2% in February 2015 after falling by 0.7% in January 2015. A report from the US Commerce Department mid-week also depicted an unexpected drop in durable goods order in Feb 2015 (down 1.4%). US initial jobless claims fell more than expected for the week ended 21st March 2015. Initial jobless claims fell to 282,000 from the earlier week levels of 291,000. Continue reading Markets Review – 27March2015
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S&P 500 Index Forecast for 2012
Note to Investors: The few cheerful days of December seem to have erased the pain of November. December has historically been a positive month, and maybe this year 2011 sticks to the trend. However, there are no guarantees for 2012. If the S&P 500 index goes down from here, due to various negative news in the new year 2012 from within the USA and from the global economy, then the major supports are at the following levels: 1110 and 1000. Investors can buy at these levels, and sell with 10-15% gain on recovery rallies.
Below 1000 level, the only trade will be on the short side. Investors also should wait for S&P to come above 1000 before making major investments. Below 1000, there is 50% probability of retesting 666 — the low made on March 06, 2011.
If things become positive globally by end of 2012 (looks unlikely, but still possible) — with EU solving their problems in a neat way, the US fiscal deficit reducing along with reducing unemployment in USA and Europe, investors exiting gold and moving into real estate, etc — then S&P 500 can move up to our upside target of 1666.
There is something special about 666. It appears in both the downside and upside targets! It will be very difficult to pick the sectors that will take the lead. Therefore, consider using the S&P500 Index ETF (symbol: SPY) to move through the volatile times ahead in 2012.
Positive US Economic Data supports US stocks – 20 Jan 2011
20 Jan 2011: Wall Street tracked declines in equities around the world after growth in gross domestic product in China accelerated to a 9.8% rate in the final quarter of 2010. The faster-than-forecast growth rate bolstered concerns that China would do more interest-rate hikes to control inflation, thereby reducing Chinese demand for commodities and raw materials, potentially derailing the global economic recovery.
US stocks were in constant search of direction the whole day. For every five stocks climbing, nine fell on the NYSE, with nearly 1.2 billion shares traded. Stocks suffered a big loss in the initial trading hours but managed to move up later in the day as better than expected economic data tried to pull up stocks. A strong dollar and concerns that China might go for further tightening of its macro economic policies put a brake on this. Continue reading Positive US Economic Data supports US stocks – 20 Jan 2011