Rapidly changing news cycle, combined with HFT algos, is driving investors' nuts. This makes it difficult to cope with the super-charged volatility. It's like Shatner seeing something on the wing. The situation in the eurozone is driving volatility and it waxes and wanes with reality and spin.
Jobless Claims data came in better than expected at 390K vs the obligatory 400K consensus. As has been routine, previous data was revised higher from 397K to 400K, and given this pattern, you should expect current data revised higher next week. The Trade Deficit improved slightly but most of that was bizarrely attributed to gold purchases.
beat (after obligatory "adjustments") analysts' forecasts by eliminating jobs primarily. They also slightly raised their future guidance perhaps by eliminating even more jobs.
Stocks rallied Thursday on a combination of overdone selling, tamer news from the eurozone (the Italians were actually able to sell bonds at 6.90% & France retained its AAA rating), Jobless Claims and Cisco's report. However, after being much higher a good portion of the gains were given back as tech lagged badly despite Cisco's report. It seems Apple (AAPL) is seeing a potential decline in iPad shipments as gleaned via
Gold reversed course falling as some eurozone fears were reduced "for now". Commodities overall were lower while oil prices continued to rise perhaps on continued Iranian tensions.
Volume was light especially compared with Wednesday's large sell-off. Breadth per the WSJ was positive.
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is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
McClellan Summation Index
is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Concluding Remarks
There wasn't any great news from the euro zone Thursday but no serious bad news either. Italy was able to sell some bonds and France kept its AAA rating for now.
Jobless Claims data was more positive although still trolling along with poor overall conditions. Cisco reported what was a nice surprise for bulls and we'll have to see how durable this news is.
After the close Disney (DIS) and Nvidia (NVDA) reported good results after the close but Nordstrom (JWM) earnings came in short of expectations.
Friday will yield more earnings news and economic data will be focused on Consumer Sentiment which hasn't been as reliable as Consumer Confidence data.
Let's see what happens.
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