Tuesday, January 24, 2012

Evening Thread


This afternoon was all about AAPL and YHOO earnings. WHile we weren't looking AMD, CA, RFMD, FIO, TQNT and others also posted earnings. CA was quite good. FIO not so much. You will have to pick your focal point or it gets a tad overwhelming. "Holy canoli" was MCC response to AAPL earnings. Expect a positive reaction in both AAPL and the QQQs.

Tonight we have the State of the Union speech, and a large group of earnings before the bell tomorrow morning. But the big deal tomorrow will be the FOMC release mid day follwed by Bernanke press conference during market hours. And then there is always Europe floating around in the background .....

Afternoon Thread


I was aiming for JJC - copper. Also someone's initials. I got CCJ by mistake. Notice it has cleared the 200 day moving average and pulled back a tad. 50 day moving average has turned north. URZ in small cap land looks about the same.

Morning Thread

Gator's Chart of the Day: DXY0

This is the daily chart of the U.S. Dollar Index. Some people (e.g. FM traders) refer to it as the dixie.

With Greece and the euro in the headlines I think it's important to take a look at the performance of the green back.  It is still the world's reserve currency and this chart plots its value when compared to a basket of currencies.

The close yesterday put it right on the lateral support line that includes the October high as well as the November intermediate high which was taken out in December and has since become support.  You will also note the trend line (yellow) that tracked rising support quite well until it was broken last week.  Also check the fast stochastic that is just reaching oversold now.

Yesterday the index touched the bottom Bollinger Band which coincided with the 50 day simple moving average.  From there it moved higher to close on the lateral support line.

With the uncertainty in the Euro Zone over resolution of the Greek debt situation and Portugal looming on the horizon I look for the dollar to move higher from here.  This should prove problematic for U.S. equity prices.  I think you have to keep one eye on the buck as you plan your trades.