Underlying trends persist
Friday, June 10, 2011 at 07:44AM Although, the 6-day SP losing streak ended, the highly visible buyers strike continues despite an 18-SP handle upside move to today’s peak in the last 24 hrs. The possible 6 –week SP consecutive losing streak is alive and well. The ‘strike’ stands out in another weak close and low volume that seems to be elevated in ETF’s vs./ comparatively to stocks. Also, the action was not broad with tech lagging from the opening bell.
Most Shadowlist plays were ~ +1 to -1% with only a few exceptions like Ag’s moving more to the upside off USDA/WSADE #’s (positive for machinery stocks, TITN nice EPS again, AGCO etc. and SINA down more on the downside. Considering the market was ripe for some relief, today’s action was nothing more than the usual first layer of some quick short covering with little conviction buying follow through. This is not surprising, the market is ‘no man’s land’ as discussed in the beginning of the week because of a lack corporate news or eco’ data to give investors any further insight on the economy. At least today’s data was better than feared and if it continues to come in this way, it may be enough for investors to nibble at these levels. Any signs of a debt ceiling hike resolution coming sooner than expected may also be enough for investors to step up in the next few weeks. All in, unless a catalyst shock occurs for either side, the same market trends will persist until June 22 FOMC.
Demi/ YourPersonalTrader
SPX 1275 = Feb/March decline