Archive for January, 2010
Traders Sell The News - Earnings Were Good But Intel and Chase Are Down!
The market broke out to a new relative high early Monday morning and the buying dried up quickly. By the end of the day, gains had slipped away and profit-taking set in. Tuesday, we had a nice decline and it looked like we might see a reversal off the new high. All we needed was some follow-through selling on Wednesday to push prices lower. After testing the downside early in the morning, buyers stepped right back in. These tiny little dips with quick snap back rallies indicate that the bid is still strong. This morning, the market is a little soft …
Index Settlement Values at Expiration for 2010
Index Settlement Values at Expiration for 2010
The Bid Is Strong and the Market Is Not Ready to Turn - Yet!
The market has been very resilient and the upside momentum is building. After one brief selloff, prices rebounded sharply. A close below SPY $113.50 could have sparked additional selling yesterday, but bulls quickly stepped in and the market recovered most of its losses from Tuesday. Last Friday, the Unemployment Report was much weaker than analysts had expected. Most revised their forecasts upwards right into the release and job growth was expected. In December, we lost 85,000 jobs. That miss should have shaken the market, but it did not. Conveniently, 600,000 jobs were swept under the carpet and these workers have supposedly …
Be Patient - Wait For A Breakdown - The Get Short!
When oil inventories and the Beige Book are the two primary economic releases, you know it’s going to be a slow news day. Yesterday, the market pulled back sharply after establishing a new relative high Monday morning. The selling pressure was persistent and the market closed near its lows of the day. Commodity stocks were hit particularly hard. They have made astronomical runs in the last two weeks and they are overbought. Cyclical stocks also retraced and they are priced for a full recovery. Any hiccup in economic activity will force a swift decline as bullish speculators head for the exits. …
A Close Below SPY $113.50 Would Be Bearish. Look For Selling Wed If That Happens!
For the 11th straight Monday, the market opened higher and once again we started the week off on a good note. As the morning progressed, the market quickly backed off from a new relative high and a warning shot was fired. I mentioned that a close below SPY 113.50 would be bearish and that did not materialize yesterday. However, the selling pressure is back again this morning. After Monday’s close, Alcoa announced weaker than expected results. The stock is down 10% after the news and all commodity stocks are trading lower. I’ve heard a few analysts argue that the move is …