EZ summit highs were penetrated in the morning, rinsed back before finishing right on the SPY swing high from early July. All in, an interesting day. Why?. Although small cap RUT was the only red finish amongst the indices many of our ‘higher beta’ Shadowed growth stocks outperformed substantially. This smells of rotation, but at this point it’s just a lot of covering in tech linked stocks.(SOX up nearly 6% off lows). Still, its possibly enough to reach SP1400 as long as bad eco’ data is ignored (Existing home sales -5% vs +1% expectation, Phily Fed today) and EZ stays quiet. Financials stepping up would enhance the possibilities of a higher SP price.
MLNX significant growth outlook followed up VMW slightly positive report to lead tech linked stocks , VFC earnings led ‘retail’ growth names..(RL, COH, FOSL +5%). FCX’s helped base metal linked stocks. Other single stocks closings, BSFT +7%, YELP, LVS, GWRE +5%, FFIV WPRT, LNKD, LULU, CRM, WYNN, BIDU >3%. FFIV weak guidance is another example in tech/internet where…”Bad reports this Q are any that simply don’t beat the watered down consensus estimates”. The stock climbed $10 off printed lows. These reactions are especially prominant in tech, which ranks as the most beaten down sector recently as far as sentiment is concerned.