Stock Market Analysis

Thursday, January 19, 2012

Dow Gains Despite Poor Philley Fed

The Dow gained 45 points in a rocky trading day on poorer than expected Philley Fed.

Fundamentals
US market opened positive today on better than expected Jobless Claims data before being mercilessly slaughtered by a poorer than expected Philley Fed released at 10am. However, the general sense of optimism in the market overcame the short sell-off, leading to a rocky but steady climb. Investors continued to return to equities, http://www.blogger.com/img/blank.giflifting bond yields across the board. Option traders also continued to trade in favor of call options, depressing total equities put call ratio. It is clear that the general sentiment in the market is a bullish one in which positive news have greater lifting effects than the depressing effects of negative news.

Technicals
The Dow continued to climb steadily on a steadily rising 30MA. This is an extremely healthy climb with some volatility expected around the 12,800 points resistance level. Tomorrow is options expiration day for January options and will no doubt be a slightly volatile day.

For now, the Dow remains in short term, intermediate term and primary bull trend.

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