Ahead of the open, (10-04)
Tuesday, April 10, 2012 at 06:44AM It was no surprise some selling occurred at the open, this was primarily due to fact ES Futs staying in-line with Friday’s lows and not bouncing prior to opening bell. Once this action washed away, it was clear by 10 am selling didn’t hit single listed stocks as speculated Friday post NFP#. Although RUT was underperforming, individual equities closely followed here were fine considering the NFP# news. A half hour later the leaders such as AAPL, PCLN reversed 25 point losses between them to trade in the green.
Still, buyers weren’t very enthusiastic to buy the broad dip as often the case on the first day after market gets blindsided by a big loss, but this was offset by sellers not continuing their early efforts. Market held Feb high, peaked at SP1387, but leaked to a close a few points ahead of the Friday’s SP close. In all, the ‘preview’ on Friday, not to ruin ones long weekend after the poor NFP# and hopefully keep one from selling this morning, played out. If the news did scare and you fear a broader down consolidation coming, at least you could've exited at pretty well breakeven prices on single stocks by holding out longer today and/or even bought some new stock to flip into the day for cash flow profits.
Markets still in holiday mode (Europe closed) and low bar set (-2% in sequential earnings) earnings around the corner made for a quiet day. It looked like investors weren’t about to bet (just yet) on weather the economy is rolling over or not, which is the outcome we were looking for here. The consensus ' slowly' emerging out the NFP# is it's not as ugly as the headline and/or a game changer by itself.