Monday, September 24, 2012

Market Review: Stocks Are Still Trading Tight


Market Update September 24, 2012
This market still needs a good catalyst to create a price expansion in one direction or another.  The ECB and Fed provided those the last couple of weeks but there is e no clear direction as is indicated by the tight trading range on the S&P 500 (SPY).  Most traders are waiting to see the price action pullback a little further before getting long and I am certainly in that camp.  I would also like to see volume pick up a little more.

Today there were some interesting stories out there.

Euro Banking System Oversight
Globally stocks were down as the German Chancellor Angela Merkel and French President Francois Hollande were not able to agree to a time frame when both countries will begin the oversight process for the European banking system.  This is somewhat critical because of the prominent positions both economies have in the EU, this will help set the stage in how the EU banking system will function to a degree going forward.

Facebook Falling
If you are interested in owning FB stock you better wait until its $15/share.  Barron’s came out with an assessment that the social media stock is only worth $15 and is still overvalued prompting a 10% sell off in Facebook to trip a circuit breaker,(a system used to protect companies from short sellers), at the NASDAQ exchange.

 

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