The premise to start the week ….”market’s ‘resiliency’ keeps on showing it’s hand as it hold ups on economic drivers withstanding depressing events”…” only hope is eco’ figures this week turn some heads away from European perpherials..”. Slowly this is playing as the big media debate for the last 2 trading days has turned to‘Eco data vs. Contagion’ as the market bounces back to back after terrible openings. The plan here is taking effect as focus is turning to eco data and away from European peripherals for the time being. Today’s data points (Chi PMI, CConfidence) moved the market in the right direction and tomorrow should be no different with key data to hit (China PMI, US ISM). The European peripheral situation will remain center stage, but if eco’ data continues to be strong (as expected), the headlines out of Europe will get muted somewhat. A combination of European fears easing and v.good data, including euro figures and we may finally break out of this 30 point November range. In reality, market needs to do it soon and gain some momentum as ‘important eco' data’ wind down after NFP on Friday into year end.
As far as the trading tape, today was more of the same (see yesterday’s bolded comment). As long as this trend keeps up, which we watch via Shadowlist, the market will hold up and you shouldn’t fall into ‘panicked’ selling because the market slides 160 and 110 points as has been the case last 2 days. There was some negative noise (liquidation) about techs/momo/internets trading patterns (FFIV, CRM, PCLN, AMZN types), but viewing it as a (month end/holiday end sell on news) phenomenon more than anything at this point as the selling wasn’t really aggressive. Still, despite a negative day, we had some good individual stocks action off our list with APKT, KH, TFM putting in NCH’s with >6% gains.