..a few names to list into Q3..PII,SHS,PLCM
Tuesday, June 28, 2011 at 07:18AM It seems market algos had a glitch today in making up for non-existent volume as DJIA,SPX,RUT finished in a dead heat (982 basis points higher). Regaining(barely)SPX 1280 is fine for the moment, but another possible 1-day wonder rally accomplished by buyers (who are shorts covering) is not a sign of ‘longs only’ coming out and participating in this politically charged market environment. The current ‘Bull’ lineup has frustrated fans as it leaves runners in scoring position consitently, we’ve seen 2 rallies just last week and at least 4 1-day wonders evaporate completely in 24hrs in the month of June. Maybe the market can bring out a pinch hitter on Tuesday and change this outcome, but in reality, any more upside will hardly be considered getting the Bull home from 2nd as it will negated by the fact it’s a holiday week in essence with desks seemingly emptying already today. Simply, market has some hours to work with tomorrow ahead of Greece vote noise.
All in, a decisive break somewhere over low 1300’s will only change the trend in many minds. As of now, longs have every excuse in the book to remain sidelined.
Some of the positives listed (ie. more Shanghai upside, bad US data ignored etc )into the trading day were cited for some of the surprise upside, but Q end / hedge tinkering vs. USD/TSY exposure/performance over the month was the predominant theme.
At this point heading into earnings season, a few earning linked stocks of interest last Q were not listed here due to market circumstances capping any possible demand post day of report. Weeks later you could see they didn’t move. Coming into this season with the idea of this market correction eventually ending, we’d watch demand to have them on books going into their earning dates this Q, maybe even some this Q2 end. Names include PII SHS PLCM.