Wall Street Will Be Listening Closely to Obama [Video]

The Dow Jones Industrial Average's ($INDU) eight-week winning streak is on the line in the days ahead, and it'll face perhaps it's toughest test of the year so far. Not only will traders contend with a slew of high-profile earnings reports, key economic data and a Federal Reserve meeting, but Tuesday brings President Barack Obama's State of the Union address.

As much as anything, traders will be reading between the president's lines to see what the administration's new approach means for business and the market, says Doreen Mogavero, president and chief executive of Mogavero, Lee & Co.

President Barack Obama"Language at this point in time is very important," the veteran New York Stock Exchange trader says. "We all kind of know where we are right now, and we've come a long way very quickly. But this could be a time where people who've had tremendous gains might be a little hesitant as to how much higher can we go and take a little money off the table."

The market's technical conditions remain overbought and sentiment, a contrarian indicator, is robustly bullish. After tacking on more than 850 points in the last couple of the months, the Dow is overdue for a cool-off. See the chart below.



With nearly half of the 30 Dow components and a quarter of the S&P 500 ($INX) reporting quarterly results this week, econ data and the president's address, this could be as good a time for profit-taking as any.

"We may see the markets doing a little bit of back-and-forth this week," Mogavero says. After all, it's hard not to be bullish on the market longer term after the run we've had, she says, but at some point some traders will start to realize those gains and begin to reevaluate their positions.

For more on Mogavero's take from the floor of the NYSE (NYX), see the video above.


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k4jlp

Wall Streets scam on energy futures is coming to an end...the oil elite has scammed all they are gonna get off the backs of working America...they don't even take delivery of the product, just use computer software to jack the price with only 5% of their money on the line while we pay triple what it should be. Gas at the pump should be 1.29/gallon right now, demand is way down due to the punks outsourcing all our jobs overseas...SPECULATORS, WE ARE WATCHING..WE ARE LOOKING AT YOU EYEBALL TO EYEBALL...

January 25 2011 at 6:28 AM Report abuse +2 rate up rate down Reply
rotten rollin

SOTU = SOS. Save Our Souls, Save Our Ship, or Same Old Sh t. Take your pick.

Always remember with Obama: Watch what he does, NOT what he says. He'll say anything.

January 24 2011 at 10:51 PM Report abuse +3 rate up rate down Reply
borderlinedefect

Oh, Please! The New York Stock Echange isn't about America anymore. Wall Street should change its name to World Sreet. A general strike in Greece or a debt crisis in Portugal has far more effect on stocks than anything the President of the United States has to say. America is just another piece of the pie and not the biggest piece either.

January 24 2011 at 10:50 PM Report abuse +7 rate up rate down Reply
savemycountry911

Liberals make up their own "facts". They never consider how we will pay for Obamacare. They just take and take.

January 24 2011 at 9:46 PM Report abuse +4 rate up rate down Reply
1 reply to savemycountry911's comment
doonooch

THOSE "LIBRUL / OBAMACARE" SLOGANS ARE WELL WORN AND TIRESOME. GIVE IT A REST.

January 25 2011 at 4:10 AM Report abuse rate up rate down Reply
k4jlp

You mean they will be listening to see if their scam game is coming to an end or do they have the green light to continue? If I had oil futures, I would sell sell sell, crude will tank to 45.00/barrel within 9 weeks...price fixing investigations have started with crude futures...Goldman is first..

January 24 2011 at 9:21 PM Report abuse +3 rate up rate down Reply
Bill

16% of blacks in America voted for Obama simply because he was black. No wonder why it took this long to get a black in office. The stupidity kills me. You never ever vote for someone for that reason. Ignorance!!

January 24 2011 at 8:28 PM Report abuse -1 rate up rate down Reply
Bill

ANYBODY READING THIS.......IF YOU ENJOY WHAT FREEDOMS YOU HAVE NOW, DON'T VOTE FOR THIS IDIOT IN 2012!!!!

January 24 2011 at 8:22 PM Report abuse -3 rate up rate down Reply
economystc

We can create 12+ million jobs tomorrow by deporting all illegal immigrants. Immigrants out American have jobs to fill. ALSO, WE SAVE $1 TRILLLION IN TAXES PER YEAR IN BENEFITS THAT ILLEGAL IMMIGRANTS ARE STEALING FROM US NOW. It’s the sinking lifeboat conundrum.

January 24 2011 at 8:21 PM Report abuse rate up rate down Reply
Bill

lets not forgot his famous speeches....."anyone in America making less than $200,000 will not have their taxes go up 1 red cent"......What a liar!!!

January 24 2011 at 8:20 PM Report abuse +1 rate up rate down Reply
Bill

I'm not interested in anything Obama has to say....he is a liar, all he does is lie!!

January 24 2011 at 8:18 PM Report abuse +1 rate up rate down Reply