Ok, when is this holiday?...
Friday, May 22, 2009 at 07:00AM Seems the long weekend can’t come soon enough for all the weary worry warts during today’s shenenagins… On a technical basis, sure, we feel more comfy over 900SPX, but once again we managed to rebound to the 20ma levels. We’re still avoiding any meaningful close under this level to ponder any further summer downside.
It just hasn't looked like this market will make a meaningful move one direction or another before the holiday. You can't do much with light volume. Earlier in the week, we said we’d be in a technical range (876-929) and despite what seems like big moves in both direction this week, we’ve basically just held this range. From the look of things, the recent stretch of range bound trading may continue after the holiday if we don't get a meaningful catalyst.
Despite the fear mongering pile on today on the UK/SP potential outlook, “Sell everything..stocks, bonds..buy Gold”. ..everything USD denominated, the market reversed and will probably claw back more points tomorrow..….
Anybody wonder if anything being sold is US denominated, why were the big US banks- brokers GS, JPM BAC WFC mostly green on the day outperforming everything!. Also, the Gilt auction in UK went much better than expected following this news. Both things really makes no sense if this was such a dramatic event. Even the commods’, which should be the beneficiaries of more 'falling out of bed' of the USD were hit the hardest today. Poor CNBC’ Bob Pasani was confused all day trying to figure why commods’ were acting so poorly on the trading floor. Well, like we said last night a failed breakout signalled a breather for them in our view and basically that’s all is needed before this trade picks up again. The point is, we expect lots of back and forth type of trading from many commodity groups which would create many great opportunities for us in the coming months.
One thing being completely ignored today was a slew of good earning reports for the tech- linked equities. BRCD, CSC, INTU, TECD, NTAP. The tech conference went well and reports have been better than expected. Maybe this will get some attention next week.
A negative we did see was in the Phily Fed # was light and new orders were quiet disappointing.
The ‘stabilization’ recovery story took another nick as sluggish reports continue the past week.
Tomorrow is likely going to be a quiet day where many traders would head out for the long weekend. We'll be here and we'd view any further weakness off low volume in the early going as an opportunity for entry.
Have a good and safe weekend..