Just as you’d like a ‘clean beat ‘ from a reporting EPS stock, you’d like a ‘clean UP’ broad market day. Today, despite a >7pt. rise in the SPX, the broad market tape was hardly clean. What’s interesting is during the 3.7% slide last week, defensive stocks never got a bid, but today as the market continues to bounce, it is the Utilities, Telecoms safety trade that leads. Add in to the equation high growth winners that went back to being sold off (CRM FFIV NFLX AKAM CMG and many more) and you question the validity of this market gain or simply ask what it might be telling you.(only AAPL bucking trend, but that’s co’ specific newsflow). Tomorrow is the 1st of the month and as everyone all the way to Timbuktu knows this is an ‘up’ day since last August, including many >2% days. If it wasn’t for this market almanac fact, a down day would be the expectation following a tape of this nature. It still might be if crude stops easing.
Shadowlist
- Commodities – Shadowlist updates have been few since the start of last week’s noise. If there is a trade oppy’, it continues to be in this space as last note pre-Thursday trading day. Ag’s ferts (NEU, POT) bounce for 4th consecutive day and CLF is the outperformer low 90’s to 97 in the coal space since.(KOL-ETF, flirting with February highs) space since….”As all noise is around $100 crude, it is surprising plays around coal are not be used. Look for trading opportunities here on the energy play as this quiet reaction should change. (CLF, WLT, ANR ). After peeling back sharply since mid-Feb, Ag’s Ferts were the first to see a buy interest reversal.”
- Momentum/earnings/“winners of ’10- As above, the high growth space is a concern as this lagging space had a few decent days since PCLN eps, but now has gone back to pre-PCLN earnings ways.
Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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