Ahead of the open, (10-02)
Friday, February 10, 2012 at 07:23AM Anyone expecting a ‘supposed’ Greece agreement to be a market mover was disappointed. Anyone expecting ECB to hint on long term liquidity operations was marginally disappointed as well; Draghi kept it all under his vest, but you’d do the same not to screw up demand for the 36month LTRO on 02/29, (so, it’s not really a surprise). In all, Draghi was more positive on associated Eurozone risks, which could have been good enough for the market sentiment now, but it wasn’t. Only thing to materialize was more of the same as another morning dip was bought, swinging the SP a few points above previous days close.(Can you say.. all AAPL!). Tape gets thinner as R2K slightly underperforms again and in this view CSCO demonstrated the fatigue angle noted to watch off earnings yesterday. Last week’s note of high expectations bar set: eco’/earnings/ Eurozone possibly being priced in reared its head today with Initial claims/ CSCO/ Greece/ECB being the role players.
Still, although the tape is seemingly going sideways, it’s really gliding and can move into SP1370 this month after hitting our 1350’s target on a breakout from 1327. The market may have hit July ’11 highs today and a few other possible technical points are inches away for resistance, (but, feels in many ways like it did preceding last week’s breakout, including the negative feeling tired). Considering the magnitude of the technical breakout that followed last week, which includes many other factors beyond ’07-’10 trend-line break (ie, #of new highs noted) confirming the move, it wouldn’t surprise to tack on more SP points down the road,(Bernanke may/may not help some Friday?). All in, due to the factors noted above, it just may take more than the very shallow dips we’ve seen this week for this to occur.
Software gave tech/ Nasdaq a bid off the TLEO deal (SABA >6%) and AKAM earnings. Aided softies FTNT FIRE CVLT here to fresh highs.
In all, stocks Shadowed’ prior to July crash are once again reporting excellent results. (latest ie. RL WFM V.) Also, names like AKAM have been rebooted by earnings after falling off the list early last year.