From the Trading Desk
It was about time we saw the market close lower on heavy volume. At one point the Dow Jones Industrial Average was up more than 155 points. The market was clearly focused in on Ben Bernanke’s testimony and prepared comments then it would turn its attention to the release of the Fed’s meeting minutes. Hints [...]
Void of economic releases the market did get showered with more than $3 billion in asset purchases from the Federal Reserve. A hiccup in the morning was quickly support as the Federal Reserve Open Market Operations flooded the market with fresh new cash. Over Europe the DAX closed in the green for the 11th straight [...]
Heading into the week the US market once again watched the Nikkei continue to move further into the stratosphere. Futures were pretty anemic heading into the trading session today. Overnight news focused on the plunge in precious metals as Silver and Gold were hit hard. Despite the negative open and sentiment both precious metals were [...]
Copyright © 2013 · Minimum Theme on Genesis Framework · WordPress · Log in
Stocks Finish of the Lows of the Day as Volume ends Mixed
Stocks continue to struggle with the Fed’s Quantitative Easing hangover as the S&P 500 and NYSE Composite get hit with a day of distribution. Sellers got to work again pushing stocks lower in the morning session. Riots in Europe certainly did not help ease any fears traders have over the economic conditions in Europe. At today’s lows the market returned to the same levels the market was at prior to the Fed’s announcement of Quantitative Easing infinity. While we closed off the lows of the session there wasn’t much to cheer about. A few leading stocks were able to hold their gains, but we’ll need to see buyers step up. Our uptrend is still intact and under pressure.
We do not have a pile up of distribution where we’d normally see during a topping market. Today’s distribution on the NYSE and S&P 500 weren’t MAJOR distribution days. In fact, volume just snuck higher. In addition, now with the market at these levels we are quite oversold. McClellan oscillator is not sitting at -200 (T2106 ticker on TeleChart). Conditions can always worsen, but we are at a level where we normally see the market bounce. Add in we only have two days left in the month there is always the possibility of the market window dressing its gains.
It will be interesting to see how sentiment has shifted post Fed easing. AAII sentiment has favored the bulls, but last week’s reading pinned the bulls at 38% and bears at 34%. Not overly bullish or bearish. However the II survey had been quite bullish. Sentiment is a tricky indicator, but at extreme points it becomes an excellent talking point.
A few stocks like FTNT, SWI, and GNC who were setting up as leaders continued to see sellers today. ELLI has been a tremendous winner and at one point was down more than 7%. This type of action in leaders normally is a bad thing for the overall market. However, we are in QE land where normal is anything but. Given the lack of distribution and oversold conditions this uptrend may still have something left.
Great news, the NFL referees may be back! Perhaps the NFL should have listen to one of the golden rules, cut your losses short!!!