NOON SWOON
Markets are lower on the heels of a) chatter about the terror alert being raised; b) Iran noncompliance with UN deadline; c) medium term overbought market conditions; d) all of the above.
I will go with d, as the markets need to consolidate and what better excuse than terror and Iran.
Despite the lower markets, the big cap DJIA is still underperforming as the mid caps are down the least of the major indexes.
Strongest sectors include gaming, semis, oils, metals, internets and tech. Down the most are biotech, homies, airlines, defense, retail, reits, drugs, trannies and financials.
Inquiring minds want to know why MGM WYNN and LVS would be solidly green on a terror alert?
Market internals are bearish with 600 more red than green on the NYSE and 500 net red on the NAZ.
SPX 185/315- NDX 35/65 and OEX 25/75.
Biggest winners among the big caps include NSM TXN HAL SLB WFMI LLTC MXIM and WYNN. Big losers include SNDK PDCO SIRI MDT AVP ATI TGT and IP.
The DJIA with 3 up and 27 down as HPQ GM MRK IBM GE and CAT show the way lower.
Key stocks are mainly lower with GOOG KLAC and SMH green. Biggest losers include ICE BOT and RIMM.
The options market is hardly smelling any fear as the VIX/VXO combo has risen about 2% on all the fear mentioned above.
Crude also trading above $61 and the OIH is up $2 and is nearing the $140 level. The OIH is another ETF whose volatility has been steadily declining and may be heading to a break out north on higher crude prices.
And just to show how tight the recent trading range has been, with the DJIA down 70 and about 130 points from an all time high, the 2 day RSI reading is at 10, a general rule buying area.
I beat the rush and bought some NAZ Futures as I suspect we won't get hit with a terror attack and crude will probably back off before the close.
posted by DAVID at
12:29 PM
3 Comments:
But who wants a piece of the action going into the weekend? I wouldn't be surprised to see a consolidation or weak day on Friday and some buyers coming out in force on Monday and Tuesday pre-data.
I'm just holding positions. About 97% long, 3% trash.
ND- I think the longs will be just fine-
Me, too. Looking at it more from a "low risk" bounce play opportunity.
If all we do is churn before the next breakout, it's not as good as if we reached down to a good low close before the next breakout, b/c a reach down gives a good, leveraged buy-in point, be 120% long or better for the move up.
A sell-off to the 26 ema again would do it. Plus, it would kill a few bears who jumped on to short at the lows ...
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