...Mixed signals
Wednesday, March 10, 2010 at 10:20PM Mixed signals... divergences, cross currents…are all over the market tape and the question is, what is the very short term meaning??
Today, part of this is likely the anticipation of 'hot' China numbers overnight that will get tightening..cutting stimulus noise all over again (export # today signalled some steam ahead) vs. the BKX breaking out today from multi month highs. Who wins?.
In March 2009, it was the breakout of BKX that led the broader market to rally from March to August. Are we in for a repeat?. You’d think with a BKX breakout and big center banks driving to the upside, we’d see more than a 2 point up day in the Dow or another day without the DOW/SPX (biggest gainers all financials) making fresh highs (which are heavier weighted with financials) than the NASD/ R2K. Oh yeah, airlines, rails lead the Transports to fresh highs, yet Dow pretty well flat. All these tape divergences may be the biggest sign the market is overbought and if the China #’s are too hot, it may be the perfect excuse to sell off early.