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Published on August 31st, 2012 | by Randomguru

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Trading Notes: Fast Friday Follow Edition

6:30am – And so begins the final trading day of the week.

Right away, the stock indices open in the green. A bit of a gap up for some stocks.

6:39am – Within the first 10 minutes of trading, it appears we have an agressive rally on our hands. It seems like the timing would be right for today, being that the market has been down all week. It would make sense that the market would pop today.

The portfolio has been downtrending all week, so eventually it would have to reverse somewhere, sometime.

Friday’s Trading Notes

6:45am – CNBC reports that this whole week was about Ben Bernanke’s speech coming up today.

I don’t really believe the market is up right now because of Ben Bernanke. There is also more hopeful news from Europe and the EDB meeting next week.

CNBC reports that the general wisdom is that Bernanke will not say anything new.

Stock Indices: $DJI +103.45 $COMP +16.39 $SPX +8.95 $NYA +54.8889

6:52am – In the first 20 minutes of trading, the Dow went up into triple digit positive territory. The portfolio was up almost 300 points. All Dow stocks were in the green.

Now, the Dow has fallen back into double digit territory, and the portfolio has fallen to around 191 points.

Ben Bernanke’s Friday Edition

Is Bernanke really that important for today’s rally? I’d like to think not, but after his speech today we’ll soon find out whether the market trends up or down.

Bernanke’s Jackson Hole Speech May Be A Letdown

NEW YORK (CNNMoney) — Every year, the Federal Reserve Bank of Kansas City hosts a meeting of the world’s top economic minds near the small Wyoming town of Jackson Hole.
The invitation-only meeting is usually a big deal, closely watched by investors, economists and journalists. Fed chairman Ben Bernanke has made market-moving statements there in the past. But those who have been to the Jackson Hole meeting before aren’t expecting much from Bernanke when he gives a speech on Friday.

“I don’t think he’s going to say anything new,” added Catherine Mann, a finance professor at Brandeis University and former Fed economist who has attended the meeting twice.

Stocks rise ahead of Bernanke

NEW YORK (CNNMoney) — U.S. stocks opened higher Friday as investors awaited Federal Reserve chairman Ben Bernanke’s speech.

The Dow Jones industrial average, the S&P 500 and the Nasdaq rose between 0.6% and 0.8%.
Bernanke will deliver his highly anticipated speech on the economy in Jackson Hole, Wyo. at 10 a.m. ET. Investors are still hoping for hints about the possibility of new stimulus measures, such as a new round of quantitative easing.

Wall Street has high expectations for Bernanke to make a bold statement about future policy. However, some positive recent economic data could make it more difficult for the Fed to justify any major change in policy, pushing the action to come from the European Central Bank instead.

Trading Notes

7:00am – CNBC reports, this morning’s rally has been manufactured by Europe.

The stock indices have fallen a bit, but well within the green. The portfolio has fallen to less than 100 points.

Stock Indices: $DJI +79.28 $COMP +7.59 $SPX +6.15 $NYA +43.0129

Bernanke Offers No Hope-ium

Bernanke Promises Nothing, Stocks Surrender Rally

Wall Street got a charge Friday morning after a rally in Europe, but slammed the brakes when Federal Reserve Chairman Ben Bernanke did not signal another round of monetary stimulus at a central bank conference in Jackson Hole, Wyoming.

Bernanke’s speech, “Monetary Policy Since The Crisis,” focused on the Fed’s efforts to provide liquidity to a financial system at the brink of collapse in 2008, and provide the lubricant for an economic recovery over the ensuing years. The Fed chief stressed that a number of unconventional monetary policy options remain, but stopped short of promising that such options will be exercised.

Trading Notes

7:36am – The rally has been re-ignited as we are into the 2nd hour of trading.

CNBC suspecting the volatility is the result of algorithmic trading activity. Oh yes, let the stock bots do their job.

Stock Indices: $DJI +100.04 $COMP +14.08 $SPX +8.21 $NYA +51.0371

The portfolio is up 110 points.

8:30am – The European Markets close for the day.

The portfolio is up 172 points, but it’s been a pretty volatile market once again, as it was up 200+ points earlier.

The Dow is back up to triple digits.

10:21am – The portfolio is tanking for the day, down 28 points into the red. Sold my positions in $SRE.

But the major stock indices are still rallying at modest levels.

Stock Indices: $DJI +56.10 $COMP +8.02 $SPX +3.61 $NYA +28.9081

10:51am – CNBC discusses Clint Eastwood’s speech last night. Saying, he looked old and doddery, but not a serious issue and won’t have any long-term political consequences. And the fact that he needed to use the teleprompter and don’t ad-lib.

I personally didn’t watch it, and am not really interested in doing so. Never raved about his movies though I’ve seen some. Maybe, my image of him is tarnished for taking a political stance and using his fame to spew his political dribble. Nuf said.

The Final Trading Hour

12:08pm – We are less than an hour until the closing bell.

I agree with CNBC analysts. Overall, the stock market has had a good year.

But, this week? The market has been down for much of the week, and today’s rally is losing steam. At least, we are in a decent rally but we haven’t gained back the losses that have incurred during the previous 4 days.

Stock Indices: $DJI +75.53 $COMP +14.10 $SPX +5.76 $NYA +41.2081

12:33pm – Less than 30 minutes to the closing bell, and the market indices haven’t changed much. The portfolio is up 39 points, and both portfolio and the stock market has been quite volatile today.

Still, it looks like we will end in positive territory for the day. But, we haven’t gained back what was lost in the previous 4 days of trading.

Stock Indices: $DJI +69.03 $COMP +13.66 $SPX +5.26 $NYA +39.7319

12:41pm – Just under 20 minutes to the closing bell. The market is making a move up! Hope this follows through to the end. The portfolio is up some 84 points.

CNBC reports that September is usually a bad month for stocks. I think I remember the stock market was gaining last year through September, or maybe that was just my own portfolio?

The Closing Bell

1:00pm – And it’s the closing bell!

The stock indices have finished in the green, and in positive territory for the day. And we end the weekend (and the start of the 3 day Labor Day weekend) on a high note.

CNBC reports this volatility has been with us the past 2 years. And this was the case especially for today.

The portfolio finished up only 61 points, but in the final minute of trading I noticed it was up in triple digits! What was up with that?!? Seriously, it was up 300+ points earlier in the trading session.

Here’s the final stock market figures…

Stock Indices: $DJI +90.13 $COMP +18.25 $SPX +7.10 $NYA +48.5858

Have a great Labor Day weekend, everyone! I’m out…

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