THE CHOP CONTINUES
Markets continue to chop with volatility as the DJIA has seen about a 120 point range thru 2:00 while the SPX has seen a 12 point range. The recent trend on the DJIA is down as a stream of lower lows has appeared over the last few hours.
Strong sectors found - drugs, utilities, banks, biotechs, real estate, brokers and gaming. Weak links - metals, homies, oils, airlines, trannies and retail.
The good - MRK MO PFE JNJ PETM CELG GENZ VRSN MO MDT WBD MTOX TBSI HDNG HURC and GTI.
The bad- CMCO SIMO FTK GSOL TSO COP WMB ATI BHI NVDA VMED PTEN AAPL ADBE AA and DD.
Market internals bearish on the NYSE (-400) and flattish on the NAZ. The NDX/OEX combo both trading with an equal amount of winners and losers.
Volatility indexes- flat and trading about 15% above the 10 day SMA's.
The TRIN is above the 1.0 line and a close above will throw off the trade signal mentioned earlier.
My take, someone or someones are selling into every rally and metals, oil down big- so just maybe a forced seller liquidating some positions? And when it ends someone gonna make a good chunk of dough buying the sell offs IMVHO.
posted by DAVID at
2:12 PM
1 Comments:
I read an article today (sorry do not have a link) which indicated that when hedge funds go bad, they liquidate their assets. The Bear Sterns funds may have had illiquid assets (CDOs etc.), but they may have had more liquid assets (like commodities) that they would have to liquidate as well.....
So, you may be right in that someone is selling in to all rallies.
Then again, it could just be the big banks who have found out that the liquidity fawcet is being turned off and hence calling it quits.
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