..dime action delivered..
Tuesday, September 29, 2009 at 08:01AM Simply, the market was high as a kite (M&A’s, a drug deal) today and it didn’t take much attendance to make a ‘technically’ impressive ‘ dime action’ move that definitely included ‘window dressing‘.
We understand what a grind it’s been on the SP as today’s move was the biggest since Aug 21st. Why was this impressive ‘technically’ only ?. Well, it’s because we found support in between 1048 and the important 1035-38. It’s not a exact science to bounce off exactly, maybe 1041 low was enough. Once we closed below 10551057, we noted 1035 was a possibility, but it didn’t curtail a reversal/ dime action before. We pretty well got that and what makes the move ‘technically’ impressive is we closed above (1057 Sept 21 low). So, why the emphasis on’ technically’ impressive?. That’s because it was the only reason as there was NO conviction buying!. Once the window dressing bid leaves in the next few trading hours, we have no reason to believe a market high on a Drug deal and an end of Q window dressing can fly too much higher, especially with the NFP report on deck.
Today’s leader was the SP Financial index up 3.4%, but this really didn’t include the usual suspects..GS, JPM etc. Instead, it was the asset managers we alerted to last week..names incl, BEN BLK, JEF and insurance names such as PRE , a DJIM earnings play broke out nicely.
In conclusion, we take the upside move in stride until/ if 1067 resistance is broken.