+0.23%
+0.09%Here’s the transcript for Jeff Millers Markets Diary for December 30, 2011. You can find Jeff live writing about his trades and chatting it up subscribers five days week at WallStreetAllStars.com/miller.
As expected, this is shaping up to be a quiet day. It will still determine the final prices of the quarter and the year. The emphasis on the calendar often confuses rather than clarifies, but it does provide an incentive to take stock.
The St. Louis Financial Stress Index declined again — to .76 from .816 last week. This is the lowest level since early September. It has pulled back from the brief entry into my “warning zone” in early October.
I did not mention yesterday’s Chicago PMI report which came in better than expected at 62.5. The main interest in this is the relationship to the national ISM report, which is widely followed and a part of my own methods for estimating employment changes. Normally we get Chicago on the last day of the month and the ISM on the first day of the next month. Because of the calendar, there is a longer period between the two reports. We’ll get ISM shortly after the market opening on Tuesday.
If that number is strong it will complete a trifecta for improving payroll numbers — lower initial claims, increased consumer confidence, and higher ISM.
No change from Felix today, so we remain 100% invested in trading accounts. The leaders are still IWM, IYR, and XLI.
GLD is interesting. The rating is similar in strength but the sector is still in the penalty box. That could change next week if there are a few quiet days. The story for USO (which attempts to match oil futures) is the same-rating of about 50, but in the PB.
Happy New Year to everyone. We’ll keep looking for opportunities.
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