Information to help with your trading
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Now for some actual information to help with your trading...
Interest Rates: December U.S. Treasury bonds closed at 151 21/32nds, up 15/32nds with the yields declining 1 foundation point to 2.75%, the bottom in two months. The key selloff in equities prompted the shift to the relative security of the U.S. treasury market and the dollar. We proceed to view treasury bond prices as in a spread between 145 and 155.
Stock Indices: The Dow Jones Industrial Common closed at 12,815.39, up 4.07 after shedding over 400 points within the prior two sessions. The S&P 500 closed at 1,379.85, up 2.34 points however for the week lost 2.4%. The tech heavy Nasdaq closed at 2,904.87, up 9.29 factors but for the week misplaced 2.6%. The positively construed reading from the College of Michigan/Thomson Reuters shopper sentiment index prompted the slight rally in equities in addition to shortcovering in entrance of the weekend. The studying was the best since July of 2007. Investors apparently rejected the status quo of the election returning the identical Senate, House of Representatives, and the President who have presided over the deteriorating U.S. economic condition. Other factorsincluded a rise in inventories at U.S. wholesalers of 1.1% in September increasing the ratio of how lengthy it will take a company to unload its present inventory to 0.eight%. Corporate earnings disappointment additionally a factor in the week’s losses. We anticipate a common floor shall be decided between the President and the House of representatives to resolve the "fiscal cliff" concern and the markets should "applaud" the cope with an interim rally. However, the overall financial picture we see creating is that of a return to "recession" and we'd use any such rally as a chance to either get out of upper threat securities or implement hedging strategies. We can help investors of large equity holdings in growing such strategies based on the "construction" of their portfolios. One vital comparison to contemplate is the one under between the current S&P 500 chart and that of 1987 which John Markman, a contributor to MarketWatch provided here. (You will have to open the hooked up copy so as to view thecomparison charts.