Your Personal Trader - DJIM Journal 2011

The Shadowlist and it’s components pretty well show the footprints of the market today and what to watch for Thursday. Market has traded pretty good on bad news, it will interesting to see how it reacts intraday to it’s problem child' CSCO. A shallow dip to Monday’s SPX open gap (if hit) would be expectation for dip buying.

Shadowlist

Momentum/earnings/“winners of ‘10 – we’ve been cautious on all the ‘clouds-virts-data centers’ heading into CSCO’s and names like AKAM, EQIX for basically the same group of stocks. AMC, CSCO, ..” The risk in CSCO’s outlook exists..”. It seems many have forgotten this by it’s run into earnings and are now paying the price as guidance is 'weak'. No matter if CSCO is a company specific issue or not again, AKAM is not doing any favours for all their peers. Noted the ‘crumbs’ this week for the Bears relating to SOX (now 3 days down), well, now it’s a nugget for them possibly. (Some bounce in opticals)
Commodities – “Under hike cloud today”..yesterday… Today, the cloud burst as this materials/commods (particularly coals, steels) were the biggest drag on the market ($CRX).
Financials – streak halted at 2 days for now. Okay, that makes 3 essential leadership groups off Shadowlist showing weakness. Pretty obvious the market can’t have this continue tomorrow/short term.
Consumer – it’s been a good pocket to be in as it’s the only pocket of strength today again, led by a big earnings day reaction from RL, >10% intraday. AMC , WFMI is a good feel earnings story for sub groups.