StockTwits Market Preview 6/26/09

• kileyay
• June 26th, 2009

Overseas

Futures are mixed following hesitant overseas markets.

European markets are fairly flat. London’s FTSE 100 and Frankfurt’s DAX are up slightly, while Paris’ CAC-40 is barely in the red.

Bolstered by commodity shares, Asian markets had a positive session to close out a rough week. Japan’s Nikkei 225 ended up 0.8%, Hong Kong’s Hang Sang increased 1.8%, and South Korea’s Kospi tacked on 0.1%.

Data

Personal income rose at a seasonally adjusted rate of 1.4% compared to the month before, the Commerce Department reported in an 8:30 release this morning. Consumer spending rose 0.3%. Personal saving as a percentage of disposable personal income was 6.9% in May.

Treasuries edged up and the dollar was weaker after the report, but futures and commodities prices were little changed, with WTI crude hovering around $70 a barrel.

Corporate

Palm ($PALM) will gap higher. The company reported better-than-expected earnings and said it would be cash-flow positive by the end of the calendar year.

UBS ($UBS) is down after the Swiss bank said that it sold $3.45 billion of shares and warned of a second-quarter loss.

Potash ($POT) swooned yesterday after it cut earnings guidance for the second quarter, citing substantially lower than forecasted sales volumes. It looks to be rebounding a bit pre-market.

Technicals

As tweeted by @VIXandMore, the VIX closed yesterday at 26.36 — the lowest level since September 12, 2009, the last trading day prior to Lehman bankruptcy.

The market continues to tussle with the lines in the dust, the moving averages.

The daily timeframe shows an uncertain market. The S&P sliced below the 20 day exponential moving average (blue line) and looked poised to do the same to the 50 day EMA (red line). But that 50 day EMA acted as support and repelled a further drop. Watch for the 20 day EMA to provide some upward resistance.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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