Considering the market squeezed on ‘hope’ this week, it’s not a surprise the peak of the move occurred just a few minutes before the last main ‘ hope ’event of the week. (Bernanke’s much awaited testimony). Of course, the hope was for more hints of QE, but the speech was less dovish than market had expected. In the last 72hrs, the tone through WSJ story and Yellen had become more dovish, so market seemed to have wanted more remarks on the prospects of monetary policy. Unfortunately this is not Ben’s way to do things.
But, is that the sole reason for the selling in the last hour?. Was the market that disappointed?. Probably not, the rollover from SP 1325 was likely due to the magnitude of this week’s rip and just pure tiredness setting in. Other than the last hour of trading, the day exhibited customary signs of digestion. End of day may have been realization this weeks ‘hopes’ calendar concluded and now it’s time to get back to some reality and cold hard facts. Greek elections have played second fiddle this week (no polls noise till election), but are now just over a week away and considering the markets tumble after last election, it will begin to matter next week. Also, a look at Gold today signals hope for any major policy action on FOMC June 20 was abating. Although the market initially rallied off China’s surprise rate cut, the realization later is the cut may have been due to this weekends eco’ data signalling some ‘hard landing’ facts.
On the corporate single stock side, LULU guided down signalling what other high beta retailers like FOSL, VRA have done since March. These names have shown high multiples were out of whack as now growth appears to have stalled on a dime.
WPRT added this week to list, peaked at 15% intraday gains.