Pre-opening Comments for Wednesday February 20th
U.S. equity index futures are mixed this morning. S&P 500 futures are down 1 point in pre-opening trade.
Index futures were virtually unchanged following release of economic news at 8:30 AM EST. Consensus for January Housing starts was 910,000 versus 973,000 in December. Actual was 890,000. Consensus for January Producer Prices was an increase of 0.3% versus a decline of 0.3% in December. Actual was an increase of 0.2%. Ex food and energy, consensus for January PPI was an increase of 0.1% versus a gain of 0.1% in December. Actual was an increase of 0.2%.
The U.S. Dollar moved higher and commodity prices moved lower in overnight trading. Gold fell another $12.30 per ounce and its 50 day moving average fell below its 200 day moving average (The so called death cross).
Office Depot and OfficeMax have agreed to merge in a share exchange. Each OfficeMax share will be converted into 2.69 shares of Office Depot.
Staples added $0.15 to $14.80 after Citigroup upgraded the stock from Sell to Neutral.
Toll Brothers fell $0.89 to $36.01 after reporting less than consensus fiscal first quarter earnings.
Royal Bank is expected to open higher after Barclays upgraded the stock from Underweight to equal weight.
Strength in the U.S. Dollar continues to have a significant impact on commodity prices.
Silver and its related ETFs broke support to reach a seven month low.
The Canadian Dollar also broke support to reach a seven month low.
The VIX Index also broke support to reach a six year low.
Adrienne Toghraie’s “Trader’s Coach” Column
By Adrienne Toghraie, Trader’s Success Coach
I have always envied the “chutzpa” of people who will take huge risks. For me they are heroes of human spirit, because they challenge themselves well beyond the norm of society, very often leaving a trail of extraordinary benefits for many. These are the scientists, the producers, the artists, the builders and yes, the traders.
Seeing the movie Avatar, I imagined what it must have been like behind the scenes to produce this groundbreaking film. Years of what seemed like endless negotiating, sleepless nights, incredible amount of monetary and personal risks all hanging on the balance of the few that would finally give their few words of critique. Fortunately, everyone seemed to win.
I also saw the movie Up In The Air that was all about an organization that was hired by firms that were downsizing to fire people. Seeing the actors portray and represent the many people who lose their jobs was disheartening. One character stood out when it was pointed out that he could finally do what he really wanted to do and that was to become a chef. Yes, he settled in a job for the sake of others and not to fulfill his dream and wound up losing in the end.
The balance between being responsible and also taking risks to fulfill your dream is not easy for most. The fact is most people settle for jobs they do not want, especially now with the threat that there are not very many jobs to be had. Many who have the dream of becoming a trader put their dream aside and settle for a life of mediocrity.
Then there are those who take the risk knowing that each step of the way will be a new challenge that they are willing to face. Bill is one of those trading heroes that I have had the pleasure of knowing and coaching.
Bill announced one day to his family that he wanted to fulfill his dream of becoming a trader. He said that it would mean sacrifice for everyone, but in the end they would have a much more rewarding life than they presently had. The steps the family took were as follows:
1. They would live on half of his income while he studied to become a trader and save the other half for the start-up of his trading business.
2. His wife would work in sales and her bonus would go into the trading account.
3. The children would take part-time jobs to pay for any of their own expenses.
4. Bill asked for half time responsibilities at his work, while he started his new career as a trader.
With half of their savings and the savings that they accumulated in that year they had $100 K for his new trading business. Bill earned $35K his first year in trading and by the third year the family had a better life style than when they started the plan.
It has now been ten years. Bill’s wife is enjoying her dream of being a sculptor. The children are in private schools. The family takes two exciting vacations a year. Bill has trained two other young men as traders and has become a community philanthropist.
Settling is not always the safest way to live your life, and it is certainly not the most rewarding. There is always risk to your choices in life. Choose to take the risk of living your dream.
Adrienne’s Free Webinars
Adrienne presents free webinars on the psychology of trading
FP Trading Desk Headline
FP Trading Desk headline reads, “Has the rotation out of bonds begun”? Following is a link to the report:
An Interview with David Skarica
Enclosed is a new interview I recently did with Smart Stock about the great valuations in junior miners at the moment, giving specific examples.
CLICK HERE to listen to the interview.
Thackray’s 2013 Investor’s Guide
Thackray’s 2013 Investor’s guide is available by ordering through www.alphamountain.com , Amazon or Books on Business.
Special Free Services available through www.equityclock.com
Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. Notice that most of the seasonality charts have been updated recently.
To login, simply go to http://www.equityclock.com/charts/
Following is an example:
Crude Oil Futures (CL) Seasonal Chart
Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
Horizons Seasonal Rotation ETF HAC February 19th 2013