Day Trading Economic News Analysis: April 9, 2010

S&P 500 Pivots

The S&P 500 started the day at the low around 1175 then soared to 1186.44 nearing Monday's high of 1187. The market was boosted due to strong retail sales data as well as anticipation of next week's first-quarter earnings season.



Friday's primary pivot point at 1183 which is last Tuesday's previous low. Expect the market to stay above the 1184 and 1187 pivot levels as it approaches the yearly highs at 1192. The S&P 500 has been trending upward consistently on the daily charts.



Summary of pivot levels:

1192: S&P 500 52 week high

1189: Thursday's pervious high

1187: Monday's previous high

1184 - 1187: Convergence of the 8, 21, 55, 144 and 200

Fibonacci moving averages on 5 min chart

1177: Wednesday's previous low

1175: Thursday's previous low

Commodities Analysis: Gold and Crude

Gold finished flat on the day retaining the $14 gain from Wednesday's trading. Other gold stocks had mixed trading:

AEM (+.22%)

FCX (+0.14%)

GG (+0.83%)

HMY (+1.66%)

AU (-1.00%)

NEM (-0.35%)

Currently at $1150 as gold imports are up in India ahead of the one million weddings planned between April and May. On the daily chart gold has been trending sideways since it reached a high of 1220 back in early December 2009. A trading strategy for gold includes buying calls on SPDR Gold Trust (ETF: GLD).



Crude oil fell $0.29 to $85.39. The dollar lost ground played apart in pushing the commodities sector higher however yesterday the dollar gained against the euro. If the dollar continues to trend higher against the euro then expect prices in crude oil to fall. On the 60 day chart crude oil looks to be tipping over as traders are expected to take profits.



Previously the OPEC cartel announced that it will keep oil output ceiling unchanged as it will keep its profit from the falling dollar. Oil was currently trading sideways between the $80 and $81 however it has regained its footing reinforcing OPEC's decision of keeping oil output the same.

Forex Analysis: Dollar Vs Euro

As the Euro regained intraday as the European Central Bank announced it will meet its obligations however the currency may still be under pressure as issues of sovereign debt linger.



GE is investing 340 million Euros ($460 million) to expand European wind operations. Companies buying into foreign currencies for purchases and investing increase the demand towards that country's currency. However the Euro gains are being cut short as Greece struggles with issues on their debt.

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Author Description :
- About the Author:

Shamim Ziyaaudhin is one of the editors of TraderMongers.com and TraderMongers Blogger a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers E- News