..moving pieces every hour
Friday, June 17, 2011 at 07:14AM Just like yesterday’s lead into the trading day, Friday’s lead is the same as all eyes are on what may materialize over the weekend or even overnight …”.there is a meeting scheduled for Sunday and a Eurozone finance minister gathering Monday and a leaders summit 23-24 June. Hence, today’s fear could reverse at any minute, but the market jitters will not be soothed until something concrete emerges”. Today’s volatile action is indicative of the market hanging onto any ‘newswire’ hit. If anything the possibility of news over the weekend hampers the shorts drive and the late day bounce off 200MA may continue with a little short covering. It is hard to see buyers stepping up as uncertainty over meetings this weekend plaques them as well.
A few notable takeaways besides the 200MA SPX push /VIX pop everyone will note was the poor afternoon action in ‘momentum’ names that preceded the bounce. Besides AAPL $318 low, PCLN, NFLX, TZOO, CMG , China’s SINA, BIDU hitting fresh lows and many other smaller names were bleeding points before being saved by the broad market SPX hit on 200ma. Why this is notable is it may have been another sign of ‘capitulation’, otherwise, it’s a bad omen of another round of liquidation in the future.