heavy dosage of headlines..

This had to be one of the most memorable trading days, one that reminds you of past crisis days in case you’ve forgotten the sea sickness feeling off every ominous headline.

Although the broad indicies were in the red in early trading, a good sign was our Shadowlist was outperforming once again in a big way.  This relates directly to the outperformance of the RUT and gradually through the day this phenomenon was picked up by the media.   As noted past few days, “Pockets”  of strength are visible.  Unfortunately, even this group couldn’t fight off the bombardment of negative headlines that ensued.  All in, it didn’t resemble a minus 25 SP handle day shellacking by close, maybe that’s because most of the action is in the ES/ETF-SPT trading with investors holding tight in certain sectors.  Unfortunately as a bounce ensued from SP1250 late in the day(see SP1250 alert), buyers were noise exhausted and remained sidelined not chasing individual stocks for now. 

Shadowlist

• Commodities-   Yesterday, noted the surprising inactivity in coal stocks, today it was the one commodity linked group that was talked about most as buyers came into the related names.
• Momentum/ earnings/ winners of ’10-   Most of the names noted yesterday led the morning move, APKT  was up 3+ before relinquishing gains, BSFT, IPGP  were strong as well.  Opticals had a bid as well, but came off highs.  Considering most mega/big caps (AAPL ,IBM, ORCL, MSFT) were hit hard,(tech off 2.7%), its good see some tech working.