February 05, 2013 at 09:31 AM EST
Six Situations For Investors To Be Aware Of Today!
Tuesday, February 5, 9:25 a.m. 1. China’s economy continues to show improvement that has any thoughts of a hard-landing receding into the background. Last night it was reported that China’s HSBC services sector PMI rose to 54.0 in January from 51.7 in December. Readings above 50 show expansion. The composite HSBC PMI, covering both manufacturing [...]

Tuesday, February 5, 9:25 a.m.

1. China’s economy continues to show improvement that has any thoughts of a hard-landing receding into the background. Last night it was reported that China’s HSBC services sector PMI rose to 54.0 in January from 51.7 in December. Readings above 50 show expansion. The composite HSBC PMI, covering both manufacturing and the service sector rose to 53.5 in January from 51.8 in December.

image

2. In Europe, the euro-zone’s service sector PMI ticked up to 48.6 in January from 48.3 in December, but remains below the 50 level that indicates recessionary contraction.

3. But outside of the euro-zone in Europe, the United Kingdom’s service sector PMI jumped to 51.5 in January from December’s 48.9 level.

4. CoreLogic reports that U.S. home prices were up 0.4% in December, extending the year-on-year gain to 8.3%. (CoreLogic’s home price data is not to be confused with other home price tracking services such as the Case-Shiller Home Price Index. They sometimes vary some).

As a side note it’s interesting that at least in Florida, new home construction prices are rising faster than existing home prices. The factors include sharply rising lumber prices, and a serious shortage of low-cost labor as many experienced immigrant workers, both documented and illegal, returned to their native countries when the U.S. housing construction market collapsed.

5. Is the correction in U.S. Treasury bonds now spreading to previously red-hot high-yield bonds? Michael Kahn has this interesting chart in an article this morning, with this comment.

“The SPDR Barclay’s High Yield Bond etf, symbol JNK, hit its highest level on Jan 25 since just before it collapsed in September 2008.”

[image]

6. The market followed its historic pattern of the monthly jobs report creating a triple-digit move by the Dow in one direction or the other, with its 149 point rally on Friday. And with its 129 point decline yesterday, it followed the second half of that pattern, which is that the triple-digit move is usually reversed in the subsequent few days and the market returns to whatever was its focus prior to the jobs report.

Meanwhile, with the moving averages themselves rising so fast, the pause of the last several days has partially alleviated the overbought condition above 21-day and 50-day moving averages. But not enough to eliminate the condition for sure.

020513b

To read my weekend newspaper column click here:  Does the Market Have It Right on the Economy Again-

Subscribers to Street Smart Report: There is an updated ‘Bonds, Gold, Dollar, Commodities’ report in your secure area of the Street Smart Report website. There will be an in-depth U.S. Markets report there tomorrow afternoon!

Yesterday in the U.S. Market.

A very negative day from the open, with the market closing almost on its low for the day. But volume remained relatively low with fewer than 0.7 billion shares traded on the NYSE, 1.8 billion on the Nasdaq.

The Dow closed down 129 points, or 0.9%. The S&P 500 closed down 1.2%. The NYSE Composite closed down 1.2%. The Nasdaq closed down 1.5%. The Nasdaq 100 closed down 1.8%. The Russell 2000 closed down 1.3%. The DJ Transportation Avg. closed down 0.6%. The DJ Utilities Avg closed down 0.7%.

Gold closed up $7 an ounce at $1,674.

Oil closed down 1.50 a barrel at $96.28 a barrel.

The U.S. dollar etf UUP closed up 0.5%.

The U.S. Treasury bond etf TLT closed 1.3%.

Yesterday in European Markets.

European markets plunged sharply yesterday. The Europe Dow closed down 2.9%. Among individual countries, the London FTSE closed down 1.6%. The German DAX closed down 2.5%. France’s CAC closed down 3.0%. Greece closed up 1.8%. Ireland closed down 0.8%. Italy closed down 4.5%. Spain closed down 3.8%. Russia closed down 0.7%.

Asian Markets were up Sunday night but down last night.

The Asia Dow closed up 0.8% Sunday night but down 1.6% last night.

Among individual markets last night:

Australia closed down 0.5%. China closed up 0.6%. Hong Kong closed down 2.3%. India closed down 0.5%. Indonesia closed down 0.3%. Japan closed down 1.9%. Malaysia closed down 0.2%. New Zealand closed down 0.8%. South Korea closed down 0.8%. Singapore closed down 0.8%. Taiwan closed down 0.5%. Thailand closed down 0.1%.

Subscribers Premium Content Area.

For Street Smart Report subscribers only, used to provide additional info to that provided in the newsletter, mid-week reports, and hotlines.

To obtain access please click on the ‘Subscribe’ link. It will take you to an information page on subscribing to Street Smart Report, a subscription to which includes access to the premium content area of this Street Smart Post blog.

In the premium content area this morning: Market signals and downside support and target for any short-term stock market correction that develops from overbought condition. Gold.


*Premium Content*

Please Login or Subscribe to view this content.

Markets This Morning:

European markets are recovering some from yesterday’s plunges. The Europe Dow is up 0.5% Among individual countries the London FTSE is up 0.6%. The German DAX is up 0.3%. France’s CAC is up 1.1%. Spain is up 1.7%. Greece is up 1.8%. Italy is up 1.1%. Russia up 0.2%.

Oil is up $.74 a barrel at $97.18.

Gold is up $7 an ounce at $1,682.

This Morning in the U.S. Market:

This week is a very light week for potential market-moving economic reports, Factory Orders, ISM non-mfg Index, Productivity, and a few others.To see the full list click here, and look at the left side of the page it takes you to.

Yesterday’s report was that U.S. Factory Orders were up 1.8% in December, not quite as strong as the consensus forecast of a gain of 2.3%.

This morning’s only report will be the ISM non-mfg Index, which will be released at 10 a.m.

The pre-open indicators remain quite positive as they have been all morning.

Our Pre-Open Indicators:

Our pre-open indicators are pointing to the Dow being up 90 points or so in the early going this morning.

To read my weekend newspaper column click here: Does the Market Have It Right on the Economy Again-

Subscribers to Street Smart Report: There is an updated ‘Bonds, Gold, Dollar, Commodities’ report in your secure area of the Street Smart Report website. There will be an in-depth U.S. Markets report there tomorrow afternoon!

I’ll be back with the next regular blog post on Thursday morning at 9:25 a.m.

Non-Subscribers:

We can help you not only make more profits, but just as importantly avoid losses, and at very reasonable cost!

SUBSCRIBE NOW! To get all of this:

(The equivalent of four or five normal newsletters at the cost of one)

  • The 8-page Street Smart Report newsletter every 3 weeks.
  • Hotline Updates whenever signals or recommendations change.
  • Two specific portfolios (Seasonal Timing & Technical Analysis Timing)
  • A 6-page Mid-Week Markets Report every week.
  • A 4 to 6 page Gold, Bonds, U.S. Dollar Report every three weeks.
  • A 4 to 6 page Global Market Report every three weeks.
  • Sy’s weekly column on markets and the economy every Friday.
  • Access to Premium Content area of this Blog, Tuesday, Thursday, and Saturday a.m.

Market, sector, stock, gold, bond, and dollar buy and sell signals, short-sales, long-side and ‘inverse’ etf’s, mutual funds. Highly regarded and in our 26th year. As a bonus for a one-year subscription you will also receive my latest book Beat the Market the Easy Way- Proven Seasonal Strategies That Double the Market’s Performance. Click here for subscription information.

This blog appears every Tuesday, Thursday, and Saturday morning!

**** End of Today’s post*****

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here