ORCL’s dismal earnings report really laid the smack down on the software sector today. Heavy volume plagued many names, but none more than ORCL. Volume rose across the board, but the NYSE volume was a positive whereas the NASDAQ volume was more due to ORCL’s massive surge in volume. Simply looking at price action the day’s session was not all that bad with some positives if you completely ignore technology. Financials were a bright spot with a few stronger names are emerging, but with the technology sector getting hit hard on volume it does call into question whether or not this rally will be sustainable.
For most of the day I had racking my brain about what this market looked like to me. The more I thought about it, the more it began to become clear this market looked a lot like 2008. Now, we aren’t coming off a huge market plunge which would be “obvious” to draw the conclusion. However, the volatility as of late reminds me much of what we experience post 2008 collapse. Like the end of 2008, it wasn’t until Jan and February when the market began to roll back over hitting lows March 2009. Anything is possible, but man, this market is certainly acting much like it did in December 2008.
There are some positives in the market like PNC and WFC, these stocks appear to be emerging leaders amongst banks. V and MA are the two stocks shining. It takes more than just a few names to really get the market going. While financials outside of BAC appear to be firming up semi-conductor stocks (SMH) continue to be rather weak. During early bull market moves financials and semi-conductors tend to lead the market higher and at the moment semi-conductors aren’t instilling the confidence we need.
Historically speaking we are in a very tough period to make money in stocks. Seasonality will play a strong role here for a bit. Anything can happen, this market has proved that! Stay on your toes.
