Courtesy of John Nyaradi.
The US Stock Market will likely rise on Monday, November 11th, 2013, as the bulls continue to charge
The Fortune Teller Speaks:
I predict a stock market rise for Monday, November 11th, 2013 because of the massive amount of greed on Wall Street at the current moment and the potential for another S&P 500 (NYSEARCA:SPY) record.
Wall Street Beats & Jives:
Monday will likely open with a lot of attention on equity markets, especially considering last Friday’s meteoric rise and above average economic data released. Because of the Veteran’s Day Holiday, trading will probably be lighter than usual, however US stock markets are open, and the bulls will likely be chomping at the bit for more positive action. Still though, with the earnings season now winding down and with the Veteran’s Day Holiday giving many people a day off, today could be a quiet day on Wall Street.
Hindsight is a Beach and We’re Playing On It:
Last Friday I got completely waxed, as not only did I predict the wrong direction, but US stock markets had one of their best days all year. My prediction was foiled by the fact that the good news was not considered bad in terms of the Fed and Fed easing and tapering, as good economic news these days typically spooks investors because of the threat of a Fed induced taper. Investors however were clearly not afraid of a taper this past Friday despite the good news, as the S&P 500 rose 1.34%, the Dow Jones Industrial Average (NYSEARCA:DIA) rose 1.08%, and the NASDAQ 100 (NASDAQ:QQQ) rose 1.60%.
Are Stock Markets driven by Need, Speed, and Greed, OR Fear?
I would say that greed is definitely the main driver of markets right now. That seems pretty clear right now.
Technically Speaking:
Technically speaking, the S&P 500 (NYSEARCA:SPY) is mere splinters away from another all time high, and last Friday only suggests higher prices. The MACD is still negative however, suggesting a whiff of bear in the air in the near future. I still maintain that the bears will take over very soon, but for now the bulls are still charging:
chart courtesy of stockcharts.com
Silk Road Trading:
Trading from the Silk Road turned out positive, with all three major Asian stock indexes (Nikkei 225, Hang Seng, Shanghai) and all three major European stock indexes (FTSE 100, DAX, CAC 40) trading nicely into the green at the time of this writing.
A Look into the (US) Futures:
US futures are currently trading barely into the green at the time of writing as well, suggesting flat investor sentiment going into Monday trading.
The VIXen of Fear:
Fear also appears to be vacant in the marketplace, as the VIX Index (NYSEARCA:VXX) lost 7.26% last Friday.
Uncle Sam is Watching U.S.:
US Treasury Bond prices also took a dive last Friday, suggesting more money moving into equity markets. The 30 Year US Treasury Bond Price Index (NYSEARCA:TLT) dropped 1.92% last Friday.
Politics Schomolitiks:
Capital Hill is staying quiet for now, although the Senate is set to grill the newly nominated Fed Chairwoman Janet Yellen this Thursday about the easing-taper problem the Fed has gotten us into. Should be fun to watch.
Gold and Black Gold Prospects:
Gold lost 1.39% last Friday to close at $1289 per ounce, suggesting again more money flowing out of the famous “hedge” into riskier stock positions. The oil spot price however is not buying the bullish action, as the oil price per barrel (NYSEARCA:USO) stayed even on Friday and lost .63% last Thursday.
Every Stock Must Die:
Bank of America (NYSE:BAC) and JP Morgan (NYSE:JP) raged last week, likely due to the Wall Street bonanza. Lennar Corporation (NYSE:LEN) is not doing so well.
Fun Fact of the Day:
According to CNN, the Gravity Field and Steady-State Ocean Circulation Explorer (GOCE) satellite burned up last night upon re-entering the Earth’s atmosphere. The 2000 pound European Space Agency Satellite was used to map ocean circulation patterns and gravity variations. After operating on batteries and solar power, the satellite finally died. Check out more here on CNN.com.
Totally Calling It:
I think the bulls are chomping at the bit for more action right now, and I think investors are striving for more records. My 5 factor indicator is flashing green. Totally calling it!
A Special Note:
Our thoughts and prayers are with our Veterans every day, not just Veteran’s Day. Our thoughts and prayers are also with the victims of the Philippines typhoon disaster.
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