...resilient so far
Tuesday, July 26, 2011 at 07:18AM The bloodbath/Armageddon called for over the weekend in the media/ paper dailies didn’t materialize. Instead a typical summer very quiet trading played out. The ES rebounded ~15 pts trough to peak by mid-day, but the saga is intensifying today/tonight with realization ….re:(SP)…”Still, rating agencies will eventually downgrade US ratings even if a compromise is reached as it will not reach expectations of the agencies”. The bond market is still showing investor calmness, but USD is showing cracks as are a few other currencies and/or bid in some safety asset classes. Also, sovereign issues are back weighing some on the markets, EFSF won’t be able to do what it needs to do until September making investors wary once again.
Aside, despite most if not all US market sectors in the red, yesterday’s note about lagging small/mid caps was still evident as mega caps outperformed by about 50bps with 5 tech super caps that have reported responsible for all SP tech index gains. In mid caps, DTLK initiated here yesterday popped 20% on volume before settling for a 10% gain is indicative of company specific stock action we should just focus on. Basically…finding a specific tree in a forest trading methodology.
Solid execution AMC in BIDU /BRCM reports. Noted yesterday, "At some point this trend will end and that is something to monitor to see if sidelined buyers are stepping up". So, watching here if recent trend ends making for a better earnings season trading environment ahead.