Two Ways: Cloudy Future for Global Auto Market
Strengthen your portfolio in good times and bad.
Demand for Toyota (TM) vehicles in Japan surged at some dealerships by as much as 50% on a monthly basis because of the country's own "Cash for Clunkers" program. But, according to Bloomberg, now that the 370 billion yen ($4 billion) program has come to an end, car dealerships are fearful of what's ahead.
Toyota spokesman Yuta Kaga said the global market is seeing a temporary boom in car sales. "For fiscal 2010, we can't forecast sales as economic and business environments are still unclear." But Goldman Sachs says auto sales next year may plunge 10% from 2009 estimates to 4.27 million vehicles in Japan and to 13 million in Western Europe.
For context on consumer spending, see Mish Shedlock's The Multigenerational Spending Collapse.
From the Bull Pen: For those who are looking for automaker exposure, consider Tata Motors (TTM). Using the "fat crayola" method, one can identify support near $11 which could provide one with an entry point. If and when.
From the Bear Cave: Bears playing Toyota to the downside are likely eyeing a back test of its 50-day moving average (currently at $81). A bounce to $84 to $85 could be another opportunity for a downside entry.
Quick Check Around the World
Asian trading closed with the Nikkei -0.27%, India 1.89%, Hang Seng 2.82%, Shanghai 0.58%, and Taiwan 0.68%.
Across the pond, we see the FTSE 0.90%, CAC 0.47%, DAX 0.79%
As of 8:15 a.m. EST, S&P Futures are trading +4.50 to 1006.00 and Nasdaq futures are +9.50 to 1613.50.
A Look at Commodities
Over in commodities, crude oil is +0.57 at 68.53 while gold is -6.20 at 991.50 this morning. Silver is -0.28 to 16.01 and copper +0.350 to 284.70.
The dollar index is -0.1200 to 78.4000.
On the Radar
08:30 Average Workweek 33.1 cons.
08:30 Hourly Earnings 0.1% cons.
08:30 Nonfarm Payrolls -225k cons.
08:30 Unemployment Rate 9.5% cons.
Happy Friday! Good luck and have a great three-day weekend!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter