by Larry Levin
Monday was an incredibly slow day. (“How slow was it?” is yelled from the crowd) Well, it was so slow it looked like the market was going backwards. It was so slow, pork belly traders were poking fun at the S&P. It was so slow, if the stock market was a car on the freeway, even “Miss Daisy” would be behind it cursing. Is my microphone on? It was so slow that the CME played the “Chariots of Fire” theme song all day in the pit. I got a million of them. Hey, tip your waiters and waitresses on the way out.
Almost ALL of the day’s gains were made before the open. When the day session began it was surprisingly sluggish for the first ten minutes, considering the sizeable gap that preceded it. The second 10-minutes of the day saw a 3.00 point range extension and that was it for the day. Almost the entire day’s range traded within an amazingly narrow range of just 4.00 points. Because of this, we would expect a rather active day Tuesday.
The only economic data point today was Existing Home Sales and it followed recent housing data: it was horrible. Shortly after the release Bloomberg said this “The housing sector may be suffering another setback, at least based on the February report for existing home sales which fell nearly 10 percent to a lower-than-expected annual rate of 4.88 million. Year-on-year, sales are down 2.8 percent. Declines are evenly split between single-family homes and condos and are also evenly split across regions.
The bad news continues: supply is up and prices are down. Supply rose 3.5 percent to 3.488 million homes in what is 8.6 months of supply at the current sales rate, up from 7.5 months in January and even above year-ago February supply of 8.4 months. The median price fell 1.1 percent February to $156,100 with the average price down 1.4 percent to $203,000. Year-on-year, the decline for the median price is deepening, at minus 5.2 percent, but is steady for the average price at minus 2.7 percent.”
Not to worry though folks, AT&T may buy T-Mobile. I say “may” because some have already noted that the government could disapprove of the merger.
But no matter, the collapsing housing sector of the US economy is so 2009 & 2010 that it no longer matters. Of sure, people are still losing their homes and cannot find gainful employment but since that has been discussed at length, it no longer matters.
Monday was an incredibly slow day. (“How slow was it?” is yelled from the crowd) Well, it was so slow it looked like the market was going backwards. It was so slow, pork belly traders were poking fun at the S&P. It was so slow, if the stock market was a car on the freeway, even “Miss Daisy” would be behind it cursing. Is my microphone on? It was so slow that the CME played the “Chariots of Fire” theme song all day in the pit. I got a million of them. Hey, tip your waiters and waitresses on the way out.
Almost ALL of the day’s gains were made before the open. When the day session began it was surprisingly sluggish for the first ten minutes, considering the sizeable gap that preceded it. The second 10-minutes of the day saw a 3.00 point range extension and that was it for the day. Almost the entire day’s range traded within an amazingly narrow range of just 4.00 points. Because of this, we would expect a rather active day Tuesday.
The only economic data point today was Existing Home Sales and it followed recent housing data: it was horrible. Shortly after the release Bloomberg said this “The housing sector may be suffering another setback, at least based on the February report for existing home sales which fell nearly 10 percent to a lower-than-expected annual rate of 4.88 million. Year-on-year, sales are down 2.8 percent. Declines are evenly split between single-family homes and condos and are also evenly split across regions.
The bad news continues: supply is up and prices are down. Supply rose 3.5 percent to 3.488 million homes in what is 8.6 months of supply at the current sales rate, up from 7.5 months in January and even above year-ago February supply of 8.4 months. The median price fell 1.1 percent February to $156,100 with the average price down 1.4 percent to $203,000. Year-on-year, the decline for the median price is deepening, at minus 5.2 percent, but is steady for the average price at minus 2.7 percent.”
Not to worry though folks, AT&T may buy T-Mobile. I say “may” because some have already noted that the government could disapprove of the merger.
But no matter, the collapsing housing sector of the US economy is so 2009 & 2010 that it no longer matters. Of sure, people are still losing their homes and cannot find gainful employment but since that has been discussed at length, it no longer matters.
Trade Date: 3/21/11
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
|
Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!
No comments:
Post a Comment