After a solid reversal yesterday, the markets opened the day higher but quickly gave back the gains. Initial Jobless Claims were reported at 473,000 after last weeks shocking 500,000. A lower number is positive for the markets and the futures saw an initial move higher at 8:30am ET. After chopping sideways for the first hour of trading, the markets sold back to the flat line. Tomorrow is the highly anticipated Federal Reserve Chairman Ben Bernanke speech. The market is looking for any sort of guidance they can get in order to figure out where the market should go next. There has been a lot of dissention during the Federal Reserve meetings and that worries Wall Street. In addition, the Federal Reserve comments and the data suggest we are back in a recession. Tomorrows meeting is probably the most anticipated meeting in months and the market is skittish prior. It seems highly likely that the markets will hover around the flat line for the rest of the day as volume gets lighter.
The SPDR S&P 500 ETF (NYSE:SPY) is down by $0.01, trading at $105.93. There is technical support at the gap fill level which was just hit. Oil moved higher early in the session with the United States Oil Fund LP (ETF) (NYSE:USO) hitting a high of $32.92. Members of the Research Center received notification to sell the USO at $32.90 after being alerted to the buy at $31.88. This was a beautiful call and another winner for Research Center members. Oil has had a two day bounce after dropping from the $80 level down to the low $70 level.
The dollar is getting hit today, sharply lower though well off the lows. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is down $0.11 to $24.07. The dollar seems to be weaker today on added anticipation that Ben Bernanke may do more quantitative easing tomorrow. This is very unlikely, but the markets are still hoping for it. To get more hardcore analysis, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
