Friday, May 15, 2009

Options Expiration Today

Good morning, today is options expiration which generally means a volatile day.  This morning some news reports come out such as the US Inflation or CPI report. Also Canadian factory sales fell 7% in March.  The auto companies, continue to close dealerships and GM may go into bankruptcy in order to avoid lawsuits related to the closures.  After hitting the $60/barrel mark, oil has pulled back and is attributed to speculation rather than supply and demand factors.  The Canadian dollar remains at the $0.85 US mark.  Six US Insurance companies will be receiving TARP funds.  Also, the risk of deflation appears to be greater than inflation as well as US prices continue to decline.

The DAX is negative this morning and so are the futures, indicating a negative open.  The market condition scans are showing a weak bias to the downside and the market bias indicators are  neutral, indicating a choppy indecisive day.  

Index

Change

%Change

Level

Phase

TSX

+139.69

+1.44%

9849.20

Recovery

DJIA

+46.43

+0.56%

8331.32

Recovery

Nasdaq

+25.02

+1.50%

1689.21

Recovery

SP 500

+9.15

+1.04%

893.07

Recovery

Russell 2000

+8.89

+1.88%

480.71

Recovery

NYSE

+66.98

+1.18%

5733.45

Recovery

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias but more positive momentum than negative momentum

Energy: moderate

 Primary Trend: Remains down to sideways

Sector

Phase

Consumer Staples

Recovery

Healthcare

Recovery

Technology

Recovery

Utilities

Recovery

Energy

Recovery

Financials

Recovery

Industrials

Recovery

Materials

Recovery

Consumer Discretionary

Recovery

Source: Telechart 

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