Back to the financial market, as usual, Pitguru Daniel Cronin will continue analyzing and sharing information on how the market work to help traders make effective decision.


The market may have some steam to move upward due to Qaddafi agreeing to a cease fire plan. This may have an effect on exports leaving Northern Africa. The issue is getting the Eastern Libyan insurgents to lay down their weapons for talks. JP Morgan is a stock to watch over the next few weeks as speculation about a company they owned called Sigma comes to the headlines. Supposedly the bank knew the company was going to have issues and they still placed client funds in the company. Over $500 million in clients’ funds is being questioned. The company actually collected $1.9 billion after the company’s demise.

There is little economic data today so the market could continue to trade on news of the Middle East, M&A speculation, and inflation concerns. Level 3 Communications plans to by a smaller rival Global Crossing for 1.9 billion in stock. The deal may value Global Crossing at around $23.04 or $3 billion. Endo Pharmaceuticals wants to acquire American Medical Systems for $2.6 billion in cash so that it can create a more efficient core urology franchise. This trader mentioned last year in a few postings that after the dust settled from the recession and a recovery was under way, companies would be cash rich and buy rivals. Also, it was mentioned that more companies would be going bankrupt paving the way for new leaders and new upstart companies. This is survival of the fittest and companies that have cash on the books have the power! By cutting jobs and carrying fewer products in inventory companies across the board have been able to save cash. The S&P still has room that I see to get to the technical level of 1345.00 discussed earlier. Earnings season could be the turning point if it hits this number and moves to new highs. Unfortunately, there is still speculation on where the debt crisis is overseas and where inflation really stands in the States. Also, the government has not come to an agreement and a shutdown still looms.

To be traders in futures trading platform, you can check out other futures market reviews to learn more how others change and influence on financial prices.


*Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

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