Wednesday, September 19, 2012

Market Review: Whats Moving the Market?


As I look at the market landscape today it seems that selling pressure is building in, even though we did not have a down day across the indexes.  The price action is trading in a tight range so far this week and has not tipped its hand to let us know as market participants which way it will go.  I believe that most traders think that we have some more pullback to go.  I would agree a healthy pullback would relieve the pressure on the over heated market so that buyers will eventually “buy the bounce”  We will see.

Most of the action today was on the oil markets (see the Chart of the Day) where it was shown that Saudi Arabia is going to be increasing supply which should decrease oil prices somewhat, and that had a lot of oil stocks off today.

Home sales improved and saw August surge 7.8% which lifted the home builders sector.  It may be a good idea to look and see what stocks are surging in that sector or that are at buy points, because if this continues it means that the overall economy is on the mend.

Tomorrow, a couple of things that could move the market are the Philly Fed report  and initial claims). These releases according to analysts look to come in a little negative which might have the market off tomorrow.


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