Market sometimes takes 24hrs to disseminate news it seems. What was disappointing yesterday….” a little surprisingly is the fact ‘Cirque de Soleil” a.k.a (IMF,EU) was on it’s way to Dublin… didn’t get the market thinking something will be resolved shortly” is the bomb today as market thinks Ireland will be bailed out one way or another due to this road trip. As far as China rate hikes, fear subsided because China said they will initiate inflation measures through something called ‘administrative controls’. What the hell is that?. To the market this is less severe outcome, but the funny thing is, this hit the wires during Wednesday trade and market didn’t react. Also, it does not necessarily remove the chance they will do hikes anyway in the near future. It’s pretty naïve for the market to be betting for the best case scenarios on both issues by driving the market to about 1195 SPX by the first 30 minutes of trading as things can unravel quite quickly. Even though, positives were outlined for the market in yesterday’s flat day (Irish trip, tech/momo’s performance, QE2 risk trade back on), the tapes exuberance sets up a possible pullback off resistance quite easily.
Luckily, we had something ‘real’ to keep the market true in the surprise upbeat Phily fed #! vs. NY Empire from previous/ Initial claims and NTAP refuted CSCO’s faulty trends in it’s CC to get all our Shadowlisted momentum/ storage/clouds/virts stocks rolling.
Add CRM’s strong earnings AMC and it looks like tech survived Oct end releases making CSCO look like a black sheep, at least until next Q4 report release time.
All in all, the gap fill in the 1180’s is a positive going into what is usually a positive biased Thanksgiving trading week.