Marketview: Future Dated Facts

• Posted by DynamicHedge
• on January 12th, 2013

The economic calendar was quiet and earnings season started with $AA announcing inline with expectations.  A very subdued week of equity markets digesting gains.  No real material changes from last week.  The Bank of England and ECB both opted to keeps rates unchanged and Japan unleashed their $116 billion monetary stimulus package as expected.  The $VIX is making multi-year lows while breadth remains strong.

The markets continued an overall rotation into riskier assets (with a couple exceptions) even in a small trading range.  Money moved into healthcare, basic materials, and financials.  Utilities, and energy being the lagging sectors.  The most notable development of the week was how well the market held up and consolidated after the big move at the start of the month.  Both the Transportation index ($TRAN) and Russell 2000 (RUT) are now in all-time highs and holding onto gains.  The senior indices should follow.

Next week there are plenty of market moving events: Bernanke speaks on Monday, $GS and $JPM announce earnings, CPI, PPI, and Housing Starts on Thursday.

Winners: $MA, $V, $GILD, $LLY, $MRK, $WAG, $CVS, $HPQ

Losers: $BA, $EXC, $SO, $COP, $WMB, $APA, $AAPL, $SBUX

Most of the metrics we follow are bullish and I’m hearing plenty of chatter of people hoping for a pullback.  The market is rising on basically nothing, so imagine if we actually got some good news in the near future?

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