could have been better....if
Thursday, February 25, 2010 at 07:42AM The SPX jumped 10 pts or so, but it didn't really feel that way. As we expected,” Simply, the FED is on hold and Bernanke’s 2 day testimony this week will reinforce this and the market sooner than later will have to go and realize it’s premature to think a hike in 2010“. But, surprisingly, it seems the market was actually doubting this and was relieved enough to make up a nice portion of yesterday's losses. Well, at least for one day it did! This upside could have been better and believable, if there was any signs of ‘conviction buying’. There was none.
Looking at all of the sectors, other than some outperforming action from the financials and big techs, it was pretty much boring everywhere else as market followed FX mostly. Still, we can spot jitters as tech showed on yesterdays Samsung news bit and today’s reaction to WDC comments at a conference around 2pm. (see WDC/STX charts). Commodity plays are mixed and most of the smaller plays on our list didn't seem to participate.
It looks as though we will still have some more consolidation to go through before there's even a talk of challenging the year high or breaking out of most recent 6 day range 1092-1112. We aren't chasing anything on today's rally and it'll stay that way until we feel more comfortable with what this market wants to do. Again, techs and commods will still be our primary focus at this point.
We have Initial Claim number on deck for tomorrow and it's part of our reasoning to wait and see before chasing a day like this. In the interest of everyone, we think it's better for this market to keep digesting its recent gain for the rest of the week.