Considering the market just rebounded from SPX1250 to nearly year’s highs after an Earthquake, Tsunami, Nuclear fears, you have to believe a 7pt something magnitude quake will only Shake, Rattle and Roll the market back to it's early morning fault line. This morning’s slide was pure ES/ SPY stuff with little reaction on individual stocks. Stocks that fell through the crack did so on small volume as bids naturally disappear and scary pants will sell at any level to exit. As traders, we've lived through enough turbulent moments the last few year’s to know being spooked out of positions is no way to go. As soon as rationale set in, the market rebounded and was back to the same trends expected here entering the week (waiting on earnings to kick off). Give shorts some credit for not laying out some conviction by pressing the market off another quake headline.
All in, not a bad day considering Financials only traded inline / SOX succumbed to a little profit taking following Samsung’s report on NAND specifiaclly that hit semi-equip linked stocks, yet SPX posted only an incremental loss.
Shadowlist
■Financials - Not the best day for rotation to exhibit itself due to newsflow. GS edged over 50ma as sector heads into it’s earnings. Last few Q’s it’s moved into the reports.
■Momentum/ earnings/ winners of ’10 – TDSC,KEYN, finally broke out to NCH
”..there is plenty of money to be taken from other sectors and so it may not last long in high beta momentum because earnings are around the corner. Still, it’s best to be prudent if trying to find a buy point as money comes out faster on the way down then up in this group”. At least it was good see a few momo names snap back, SINA, SOHU. MCP , did as well but it was purely on newsflow (congress bill)