..doin' the Hokey Pokey..
Thursday, September 17, 2009 at 08:07AM So…who’s responsible for the market moving almost 40pts since an overnight low of 1030 a few days back?. DJIM members know…right?. We definitely hope or you’re missing the point of our daily Journals.
Simply, the answer is the finnacials..banks- brokers etc positive/upbeat tone from Barclays conference.
Why?…."In our view, today`s upside risk is something you probably didn't hear much about in the media. It is the Barclay`s conference tomorrow/ Wednesday, where banks will start updating the markets on Q3!. …..Well, this week, this financial conference is fear for Bears! …………The shorts have been covering ever since and we say "hello" to 1068-1070. The market not only closed above 1055 Aug upper trendline, it just went straight for a close of 1068 on a broad move. Again, shorts either cover or have no cojones to put on new positions due to "upside risk". The best they can do is wear a protective cup.
What we are seeing is our premise of banks- brokers taking leadership again for the next/ final leg higher in 2009. It's seemingly beginning, but we have apprehension because it's happening too early. What the hell are we going to do the rest of the year, if this continues now and we shoot to 1150-1200?. To be honest, we need to curb the enthusiasm!
You put your right foot in,
You put your right foot out,
You put your right foot in
And you shake it all about.
You do the Hokey Pokey
And you turn yourself around
That's what it's all about!
Yep, that's what the market is doing again this week as SP Financials (nearly 5% up) put their right foot in and the Techs put their right foot out! (+1.5% for the week) and the market shakes to new cycle highs one again. Note, we had also lukewarm reaction to a few positive pre- announcements eg. SLAB. No effect worries us some going into EPS season as it comes on the heels of muted INTC reaction a few weeks back.
Commodity- linked stocks, adding to USD weakness, we had many positives from talk of China demand from atleast 3 different sources. As far as VVUS and it's offering AMC...you don't do a positive phase 3 trial without a follow up secondary. It's the law of the land and in this case it's good its announced quickly. Hopefully it can be priced immediately and than we can get on with the stock moving with some fat cats in. It's occurred with OGXI which doubled since theirs, HGSI which went up at least 50% higher after its secondary. No promises on same % results, but as a long term hold it will pay.