As the Dow drops below the 10,000 mark, futures are moving up. This commentary can be helpful to your trading.

Stock Futures Pointed Higher

Stock futures are higher, an indication that the Dow Jones Industrial Average’s drop below the key 10,000 line in the previous session is in fact, luring some buyers back into what’s been a choppy market over several sessions.

At last check, the S&P 500 futures rose 7 points, while Nasdaq 100 futures are up 12 points and DJIA futures rose 50 points. Asia and Europe gained.

Stocks fell Monday for the third time in four days. Part of the pressure on equities derived from Wall Street Journal report that Federal Reserve Chairman Ben Bernanke will begin laying the groundwork for credit tightening later in the year. Ongoing worries over the debt health of some European nations also weighed.

News that European Central Bank President Jean-Claude Trichet was leaving a summit in Sydney a day earlier than planned helped to lift the euro and European equities on Tuesday, MarketWatch reported.

A spokesman for the ECB said Trichet was always planning to attend a summit of European leaders scheduled for Thursday, but the market interpreted Trichet’s departure as increasing the chances for a European bailout package later this week, the MarketWatch report said.

As for individual pre-market movers:

Electronic Arts (ERTS) is down nearly 8% in continued negative reaction to its evening earnings. The company beat with Q3 earnings but offered several quarters and FY guidance that’s mostly below the Street view.

Cell Therapeutics CTIC) is off to a robust start after the company announced the FDA informed them that due to severe weather conditions in the Washington, D.C. area, the FDA is postponing the Oncologic Drugs Advisory Committee meeting that was to be held on Wednesday, February 10, 2010 to discuss the pixantrone New Drug Application. The FDA indicated that it intends to reschedule the meeting as soon as the FDA can determine a schedule that will allow them to reconvene the advisory panel.    –more

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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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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)