Morning Thoughts May 22
Great move on very thin volumes – closed at absolute highs, vlms 24% below Fri (and 12% below norm) – VWAP a support all day . Rotation to risk evident (SPX Cyclical/Defensive ratio +1.8%….best one day rally since Jan 18th) – CYC index rallied 2.4%. VIX fell over 12%. Simply an overdue rally – As […]
My SPX Resistance Points
1320 1340 1352 1357-1360 and 1370ish
SPX vs % of NYSE Stocks Above 200 SMA
The chart below compares the S&P 500 to the % of stocks on the NYSE trading above their respective 200 day simple moving average. The white line has taken quite the plunge recently and traded below the orange line (SPX) all year. More importantly however let me point out how both bulls and bears can […]
Early Morning Movers…
ADVANCERS: • JMBA +23%; Raises company-owned comp sales forecast • YHOO +5.7%; Alibaba to buy back stake for $7.1b • SWHC +5.2%; 4Q prelim. sales above forecast • ANR +2.6%; Raised to buy at Brean Murray • PCX +3.3% • BCS +2.3%; To sell $6.1b stake in BlackRock • BLK -2.9% • MMI +2%; GOOG […]
One Possible Scenario…
We all have witnessed the central bank liquidity induced rip-your-face-off rally from December to early April and the subsequent sell-off to levels in the S&P 500 not seen since mid January. Big name brokers such as Credit Suisse barked loudly about their call of a move into equities and out of bonds right near the […]
Morning Thoughts May 21
US markets continued to trend lower on Friday as investors took risks off the table ahead of the weekend. There were no specific news driving the market. Of the 24 industry groups in the S&P500, only Telecom Services was up on the day driven by strength in AT&T. Despite the ongoing macro concerns, euro strengthened […]
Website is back up…Halleluya
Two Key Charts From 2011
The dollar index. The story this year has been the continued inverse relationship between the dollar and risk assets. After selling off in the early part of the year the dollar has overcome significant headwinds and showed resilient strength that looks promising for further continuation upward. The dollar has gone nowhere in 2011 if we […]
Bucket 2 Trade Idea: SBUX
Note the up-trending channel in Starbucks (SBUX) since 2009. We are not at the top of it and are slowing down. At the very least one would expect a pullback to the low $40s or below for a little mean-reverting trade. We may sell far out of the money calls at the beginnig of the […]
Market Outlook Webinar Tonight!
at 4:30PM ET for 45 minutes Register here: http://www.anymeeting.com/PIID=EB50D9878747