..Some footing
Wednesday, June 24, 2009 at 06:31AM All we could ask for is some stability at this point, today we probably found some footing. Early in the trading day, it looked like the recent downside grind would continue to May lows and we honestly had/ have no problem of going 880, which marks the May lows with the April highs just below. Maybe the market participants feel lucky and feel like they can prosper from 888.8 as the market finally found a bid. Still, all eyes are on FOMC at 2:15 tomorrow and all we really did was flat line all day, so we'll keep commentary short. After we get through the statement all eyes turn to earnings and the possibility of the “Golden Cross” for a technical signal. So, let’s just get through this tomorrow in one piece.
As far as flows today, our ‘Steel' focus in commodity -linked stocks had numerous positive commentary points from CMC MT X .(alert- comment post today). The USD$/ DXY below 80 helped the cause for all groups, but we’re concentrating on Steels as we’ve pointed out numerously. We continue to pick up X , but we have others you can buy like AKS, RS SCHN ZEUS . Considering, we’ve been playing commods’ for what seems like years now, everyone should have their favourites that you feel comfortable trading in whatever commod’ group. The positive flow in commods’ may continue for a few days at least after the bear market like recent slide of 20%+ in most names. Some decoupling from USD should occur at some points after such a slide and so stocks may move on their own.
Remember, despite what the World Bank noise was on most economies, they did raise China forecasts the week before and so we still like this group now for trade. PWRD made new recent highs after alerted recently. A few opps to pick up in $27s have come since and it flirted with $30 a few times today.
Everything else is still shaking off their recent beatings and money flow into the sectors just wasn’t there yet today. Basically the Banks- Brokers./ Tech hugged the SPX later on as they found some footing after recovering early losses. That’s all we can ask for today.
