..sloooow day
Tuesday, October 5, 2010 at 07:57AM As many times discussed here, if the market gets hit off many little news bits, it usually captures a positive bias back the next day. This afternoon’s comment (ES 1130) related to today’s downside likely capped heading into the last 90 minutes. Reason being there is no one ‘fundamental’ reason worthy of a drop (`~1%) and so buyers would eventually appear. Market has POMO coming so the odds increase. The only thing to know today is the Euro had a temporary setback/ USD shaved off last weeks losses and equity market took a step back because of it. In this opinion, the end result will be a weaker USD ahead of QE2, no matter the Euro data/news day to day that may bounce it like today.
Mostly a non-event day (very light volume) as most wait for earnings and data later in the week to show their hand. The longs to chase to some and/or the shorts to gain confidence to press on positions. Most of today was similar to last few days as profit taking/rotation out of tech ensues. Other weakness was USD related as commodities rolled, China demand concerns added to pressure, notably steels, iron ore. The market is so fickle on quiet days as Friday’s China PMI is forgotten and some ’projection’ headline from some organization takes over. But, of course if USD was weak this bit would have been immaterial.