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Market Recap 9.12.2012

 The new phone will also be lighter and thinner than previous versions. The iPhone 5 will retail for $199-$399 with a 2 year contract with a service provider.  In addition to the iPhone 5, Apple announced a new line of iPods.  Updates to iTunes were also unveiled, users will now be able to share photos via Apple’s iCloud.

Coming up tomorrow, markets are looking to the FOMC meeting announcement and forecasts as well as Bernanke’s press conference.  Bernanke is expected to announce another round of quantitative easing. The recent poor employment numbers support Bernanke’s case that the economy is struggling.  However the upcoming presidential election complicates the upcoming Fed decision.  Any position that Bernanke takes will likely be viewed as politically motivated. A new jobless claims report is also scheduled to be released tomorrow.

James Ramelli B.S. in Finance from UIUC. Email: james@KeeneOnTheMarket.com Follow: @Jim_KOTM

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Trade of the Day (NRG) 9.12.2012

Chart Candle Stick StocksTrade:  Buying the NRG Sep 22 Straddle for $.95

Risk: $95 per 1 lot

Reward: Unlimited

Notes:  Paper bought 4892 NRG Sep 22 Puts for $.40 OPENING position

UPDATE 9.16.2012  With time decay is against me, these Straddles are worth $.70, but time is working against me.

UPDATE 9.21.2012  I sold all my Puts out at $.65 and and Calls expired worthless, so the Straddle was sold for $.65.  Moving to the next trade.

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Halftime Report 9.12.2012

Some of the announcements from today include iPad sales of 84 million units and the iPad accounts for 91% of web traffic. The phone has a thinner, lighter and bigger glass screen and aluminum case. Apple gave developers an early peek at the specs in order to have apps available for the new dimensions. The new iPhone is both HSPA+ and LTE compatible on a single chip and single radio. It has a new A6 processor with double the speed of CPU and graphics. The 5 is an overall upgrade from the iPhone 4.

AT&T Inc. (T) move up one dollar early in the morning most likely on news from Apple (AAPL) releasing its new iPhone 5. The stock is now up only $0.15. The carriers will have to pay a high premium to get the iPhone 5, contributing as much as $400 per customer for a two year contract.

The DOW is up 26 points today, 0.19%, to 13,347; The NASDAQ up 10 points, 0.34%, to 3,115 and the S&P is up 4 points, 0.31%, to 1,438. The DOW started higher today and peaked early in the morning at 13,374 and then hit a low around 11:00 am of 13,318. It is hard to tell what is moving the market today as both positive and negative news has come out of the media today.

Gold futures are flat, silver and crude futures are down less than half of a point but platinum futures jumped up 41.90 points today, a 2.61% gain. Corn futures are down -9 points, a 1.16% drop. Corn peaked around 830 in the middle of August and has since been down, currently sitting at 768.60.

Imports and Export prices came out today. Import prices are down on the year by more than 2%. Jobless claims and Producer Price Index tomorrow at 8:30 am EST.

Alex Kalish has a masters in economics from Suffolk University.

Questions, comments and suggestions welcome: alexk@keeneonthemarket.com

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