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Markets have been improving as we come near the end of the year.  There are a few factors that could be the reason.  Christmas spending was better than expected.  Real estate sales where better than the previous month.

Many investors are optimistic about the coming months and the markets are reflecting that, but don’t get too comfortable the markets could easily turn back down.

Market Analysis Before New Year

Equities rallied last week almost everywhere in the world, almost giving an upside direction for New Year 2010. There are few important things to note though. I will put my views on the possibility of breakout on upside looking at technical indicators.

Dow Jones Industrial Average:

This most followed index did manage to close above 10500 (weekly closing) which was proving a big resistance so far for almost a month. However, volume does not confirm a breakout but I give it benefit of doubt as last week was short in duration and the day it closed above this level, had half day’s session. However, the daily closing on Dow Futures does not suggest any breakout as the close and high, both were below previous ones. Unless there is clear direction from both the futures as well as index, we should be careful.

S&P 500:

This is the index I follow most and in my opinion its far better to look at S&P 500 chart than that of Dow Jones Industrial Average. The S&P 500 index managed to close higher both on weekly as well as daily time frame. Volume has not confirmed but again this may be due to the shortened week. The S&P 500 Futures has also closed on new year highs both on daily as well as weekly time frame and as of writing this post, it is trading marginally higher near 1123. I guess there can be more upside in coming days.    –more

Related financial markets articles

• Fibonacci 50% Rebound Shows S&P 500 Meeting Strategist Forecast (businessweek.com)
• Gains Overseas, Retail Sales Data Boost Futures (abcnews.go.com)
• Futures higher ahead of housing, confidence data (seattletimes.nwsource.com)

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Futures can be very profitable to trade, but current information is important to have available to make good decisions.  Here are a couple articles that can help you make a better decision.

Grain Futures Market Analysis

March corn futures closed down 2 cents at $4.06 1/2 yesterday. Prices closed nearer the session low yesterday. Losses were limited by a fresh export sale of U.S. corn yesterday. However, bulls appear to be getting tired after the recent rally. Prices are trapped in the middle of a choppy trading range at higher price levels, bound by solid support at the November low of $3.72 1/2 and by solid resistance at the November high of $4.25. Bulls still have the overall near-term technical advantage. Bulls’ next upside price objective is to push and close prices above strong technical resistance at the November high of $4.25 a bushel. The next downside price objective for the bears is to push and close prices below solid technical support at $3.90 a bushel. First resistance for March corn is seen at this week’s high of $4.10 and then at $4.15. First support is seen at yesterday’s low of $4.05 and then at $4.00. –more

Corn Futures Not Just For Farmers

Corn futures are one of the major futures markets in the world, as corn is the staple grain used in the west, especially in the United States. Billions of USD worth of corn futures are traded each day through markets, helping both to drive the price of corn, and to stabilize the market.

Corn futures started trading in Chicago at about the same time that cotton began trading in New York, in the mid 1800s. Originally, the corn futures were for 3000 bushels but now it is traded for 5000 bushels. Corn futures trade on the eCBOT around the clock, pit session runs from 10:30 am est thru 2:00 pm est close. Who wouldn’t love a 3.5 hour workday?

Corn futures sometimes close higher with the dollar losing ground and fair harvest weather in the forecast. Wheat prices often rise with exports below expectations for the week. Corn production is up along with ending stocks on slowly declining livestock numbers. Though the trading frenzy subsided along with corn futures prices at week’s end, the blight lifted the price of corn futures bper bushel last week. –more

Related futures articles

• Futures Markets Say Democrats Retain Control (politicalwire.com)
• Commodities mostly rise as dollar falls; Oil dips (sfgate.com)
• Crude Futures Extend Gains (online.wsj.com)

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Here are a couple articles that effect stocks.  Information like this can really help your trading.

Mean Street: The Lost Cause of General Electric and Jeff Immelt (GE)

The stock is trading up eleven cents at $15.72. Yesterday, linking to the story of their big wind turbine order I said:

GE is up a nickel at $15.71. This is one sick stock, I’m starting to think that the only catalyst to bust it out will be Immelt’s departure….

From the WSJ’s Deal Journal:

General Electric CEO Jeff Immelt’s speech on Wednesday at West Point was billed as “Renewing American Leadership.”

But after I read his address, the only thing it renewed were my doubts over Immelt’s past leadership and where he was taking the company.

It certainly is a remarkable speech. Under Immelt’s eight years at the helm, General Electric has lost almost two-thirds of its value. Earlier this year, GE was on the verge of a total meltdown. So was GE’s “leadership” to blame?

Apparently not. It’s American capitalism that’s at fault, Immelt implies. All that “meanness and greed”. Bad rich people. In Immelt’s view, good riddance to the 20th Century “individualistic win-lose game.”   –more

Stock Futures Push Higher on Retail Sales

U.S. stock futures pushed to new session highs Friday morning after November retail sales rose nearly twice as much as expected. After trading about 30 points higher prior to the morning’s sales report, Dow Jones Industrial Average futures recently tacked on 56 points to 10397. Standard & Poor’s 500 futures rose 6.6 to 1104, and Nasdaq 100 futures added 10.5 to 1808.5.   –more

Related stock news articles by Zemanta

• Asian Markets Climb as China’s Exports Improve (nytimes.com)
• Futures Climb, Await Retail Sales (online.wsj.com)
• Stock futures buoyed by gains in overseas markets (seattletimes.nwsource.com)