Tuesday, March 19, 2013

Weekly Newsletter March 17th - March 23rd


Current Events:  U.S. indexes reached new highs for the year last week, but recent news out of Europe has caused investors to worry. Highly debated decisions regarding the handling of the financial crisis in Cyprus could now jeopardize the long-term political future for key players in the euro zone. All of which has slowed down, at least for the moment, the steadily rising U.S. market.

What to Look for This Week

Just a few big names report earnings this week as the quarter approaches its end. Famous brands such as Nike, General Mills, and FedEx are set to lead the way. Computer software giants Oracle and Jabil Circuit are also likely to catch attention from investors this relatively quiet earnings week.

News Affecting the Markets

The latest shoe to drop in the euro-zone saga is Cyprus. The little known land has become the epicenter of the euro-zone financial crisis mostly in large part to recent proposals to rectify the issue at hand. Under a rescue deal announced Saturday, international creditors agreed to provide 10 billion euros to the Cyprus. In return, the country has plans to sell government assets, raise corporate-tax rates and impose a tax on interest earned in its banks. But most controversially, the aid package also requires a one-off levy on deposits in all banks in Cyprus.

Smart Investing

 Tape Reading:  Following price action can be very confusing. One of the main ways to follow price action is to examine the price compared to an indicated point. Many traders use pivot points because it has shown consistent results for those experienced. This is the simplest way to tell if your position is approaching or moving further away from a specific point. This lends itself to the trader getting a feel for what’s happening in the market once their position is initiated. The indicated point more than likely is your entry price. Some points have more importance such as opening price, new highs, or new lows. So when examining price action, you want to acknowledge how fast it’s moving and how much it’s gone up or down. To evaluate this you need two points: your indicated point and the price it’s trading at the time.

Earnings for the Week

Monday: No major announcements.

Tuesday:  Williams-Sonoma Inc (WSM) {After the Close}

Wednesday: FedEx Corp (FDX), General Mills Inc (GIS), GUESS? Inc (GES), Jabil Circuit Inc (JBL), Oracle Corp (ORCL) {After the Close}

Thursday:  KB Home (KBH), Micron Technology Inc (MU) {After the Close}, Nike Inc (NKE) {After the Close}

Friday:  Darden Restaurants Inc (DRI), Tiffany & Co (TIF)
* Earnings dates and times are subject to change

 
Economic Data this Week

Monday
NAHB Housing Market Index @ 10:00 AM for March (Act. = 44, Prior = 46)

Tuesday
Housing Starts @ 8:30 AM for February (Est. = 905K to 911K, Prior = 890K)
Building Permits @ 8:30 AM for February (Est. = 915K to 925K, Prior = 904K)

 Wednesday
MBA Mortgage Index @ 7:00 AM for 03/16 (Est. = n/a, Prior = -4.7%)
Crude Inventories @ 10:30 AM for 03/16 (Est. = n/a, Prior = 2.624M)
FOMC Rate Decision @ 2:00 PM for March (Est. = 0.25%, Prior = 0.25%)

Thursday
Initial Claims @ 8:30 AM for 03/16 (Est. = 345K, Prior = 322K)
Continuing Claims @ 8:30 AM for 03/09 (Est. = 3065K to 3100K, Prior = 3024K)
FHFA Housing Price Index @ 9:00 AM for January (Est. = n/a, Prior = 0.6%)
Existing Home Sales @ 10:00 AM for February (Est. = 5.00M, Prior = 4.92M)
Philadelphia Fed @ 10:00 AM for March (Est. = -3.0 to 2.0, Prior = -12.5)
Leading Indicators @ 10:00 AM for February (Est. = 0.5%, Prior = 0.2%)
Natural Gas Inventories @ 10:30 AM for 03/16 (Est. = n/a, Prior = -145)

Friday
No scheduled announcements.

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