DJIM #12 2001

Although Friday’s tape roared out of the gate on positive macro issues developments (Yen intervention, some Japan hope, ceasefire noise), it gradually declined throughout the day as the high beta and/or tech came under pressure.  Post- lunch media conversation turned to this lagging market aspect discussed here as ‘disappointment ‘ heading into the trading day.  What was noted as ‘value’ seeking bounce continued into Friday’s trade and picked up speak of rotation from Tech to Financials(following dividends) as well.  It wasn’t pretty, but it was another step towards ‘stabilization’ after ‘step 1’(Thursday).  Basically, the market has been buying time while the nuclear story stabilizes....”… watch if mkt starts to ignore headlines from here as positive” from SPX 1250 alert.  This was the case Friday even though headlines were still negative, the market did not whipsaw as previously.

Heading into the trading week with positive developments in Japan’s nuclear saga weekend/ tonight, we are watching for corporate earnings to better the situation for high beta/ tech anxieties to possibly dampen the negative sentiment.  This is likely to be the focus and most important factor in continuing this reversal.  It starts with TIF  with has been under big pressure on Monday morning with ORCL JBL RIMM RHT BBY types to follow.

Update on Monday, March 21, 2011 at 08:15AM by Demi/ YourPersonalTrader

Chip, Infinineon, AIXG getting tech bid (Japan demand fear receding for now) in Euroland. TIF here.