Use access key #2 to skip to page content.

inthemoneystock (< 20)

Mixed Data As Markets Ready For Next Major Move

Recs

0

January 12, 2012 – Comments (0) | RELATED TICKERS: SPY , UNG , USO

The stock markets are flat today after mixed data across the globe. Overnight, China gave the futures a push after reports showed inflation cooled slightly. The consumer price index rose 4.1% in December in China. Overnight, the Dow Futures had been higher by over 100 points. This morning the ECB disappointed the markets when they held interest rates at 1%. Traders had been hoping for a more dovish ECB. At 8:30am ET, Jobless Claims were reported at 399,000. This was a jump from last week and back to that scary 400,000 level. The futures dropped back to the flat line which is where the markets are trading now. The SPDR S&P 500 ETF (NYSEARCA:SPY)  is trading at $129.01, -0.24 (-0.19%).

This is the second flat day in a row after the Tuesday rally. The SPY is still stuck below the resistance level of $129.50. While into resistance, this light volume action and consolidation still speaks of another push higher.

Natural gas continues to be pounded. The United States Natural Gas Fund, LP (NYSEARCA:UNG) is down another 3% on the day. This dramatic fall continues with no bottom in sight. Oil on the other hand continues to grind higher. The United States Oil Fund LP (ETF) (NYSEARCA:USO) is trading at $39.25, +0.35 (+0.90%). It is very rare to see this major divergence in energy commodities. At some point there will be a snap back in natural gas. It is most likely nearing. Watch for news out of the government on incentives to switch to natural gas. It has long been talked about and most likely near.

Gareth Soloway
InTheMoneyStocks.com

0 Comments – Post Your Own

Featured Broker Partners


Advertisement