Ahead of the open, (18-07)

Bernanke’s prepared text took the market down, Bernanke’s Q&A took the market up.  Yep, that pretty well sums up the schizoid market today!.

  

In the end, equities might have gained, but USD/Gold/TSY’s signalled no conviction in the belief QE was coming in August (although odds went up for action in September).  Also, SP may have gained 10pts, but higher beta hardly participated as single stock action was lagging. 

 

Besides a few recent IPO’S like YELP, GWRE up 7 and 5% respectively, it is hard to find a beta stock up even 2% today.  R2K gains were half of SP’s. The SOX chart remains ugly and hit fresh multi-months lows today and 52w high list includes all the safest havens (REITs, utilities, Pharma).  This is hardly a strong rally into resistance in the low SP1360’s and so caution is needed.  Until this market narrative changes, it is best to concentrate on upcoming earnings surprises than chasing previous ‘growth’ winners at this point.