Good Morning Traders, Yesterday was a rather Whimsical day in the Stockmarket. With President Obama making his last speech of his first term and Ben Bernanke making his first speech of 2013 the Market was in rather wait and see mode ahead of any possible comments on the Debt Ceiling or Large scale asset purchases(QE). Both failed to deliver anything Market moving on either of these topics and the S&P 500 was stuck in a 7 point range all day.
The continuing rotten Apple saga continues with Apple's share price trading below $500 in the Pre market and in trade briefly yesterday. A 25% loss of share price in 3 Months since its September highs of $700.
Apple has been weighing down the Nasdaq and the S&P 500 in the last 2 trading sessions with the Dow Jones 30 the Notable outperforming Index, With investors diving into Consumer stocks. A clean break of $500 for apple could see a sell off in all equity indices as the market will become very nervous about the future growth of the worlds leading company.
Moving onto Currencies the story of the day was the EUR/CHF breaking out of its deadzone/ceiling that the SNB had imposed in 2012 to stop the rapid appreciation of the Swiss Franc. In the last week the Swissy has risen from under 1.21 to 1.239 with investors more optimistic about the Euro's future.
The EUR/USD was quiet yesterday after its hectic last week, Selling off in the morning before Rallying into Bernanke's speech.
Level's to watch out for today are 1.334 on the downside and 1.34 topside. The S&P 500 has been ranging and needs a catalyst to break out of it 1466-1475 range. Maybe the Retail Sales report at 13 30 today?
We will wait and see!
Happy Trading
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