Seems like old times as the markets turned down near the midday and never looked book- adios to support at SPX 885 - not sure where next support is on the SPX but I still think the buyers will step up and turn the beat around.
Drugs, energy and metals were the best sectors while real estate, banks, shipping and homies lagged.
NYSE- 1700 net losers;
NAZ- 1400 net losers;
VIX- hardly moved - sitting at 56;
Fairly low volume with under 1.5 B shares traded.
Looking to buy DIG SSO on further downside action- back to SPX I guess 850/860 could be the next support area. Clearly, 905/910 the upside top - and hopefully we get back there shortly.
RSI (2) levels near 20- and that buy low sell high system has been doing ok of late.
Markets opened lower on the heels of the lousy claims numbers but are now fighting back as it looks like the bulls want to buy the dips again.
Strong sectors- just like old times- metals, energy, semis, drugs and bio while real estate, financials and trannies lag.
NYSE- 440 net losers;
NAZ- 400 net losers;
NDX- 30 GREEN;
OEX 45 GREEN;
VIX - flat at 56;
GOLD near 830;
Crude- UP 3 at 46.5;
SPX support now at 885 as it has bounced off that level a few times in the past few days- draw the line- resistance appears to be at the 910 level which is also near the 50 SMA.
Bought DIG and NOV this morning- holding on to SSO and looking to add at lower prices.
Choppy day for the market as the bail out talks seem to end with a positive conclusion for the markets in the morning and then the choppy sell off in the afternoon.
Over all a positive day as the major indexes acted well into the close adn that was without any help from the financials which were laggards all day.
Market internals were positive all day giving one the hint any sell off wouldn't be too bad.
VIX continues to drift lower- now at 55.5;
Support and resistance pretty easy to see on the SPX - check for 885 on the bottom and 909 area on the top- also SMA 50 on top big resistance from a few days ago.
Overall, a bullish take as it seems folks want to buy for now and with the 3 day consolidation - the over bought issue is ending with a RSI (2) number below 70.
Morningstar out with its list of candidates for Domestic fund manager of the year- and how have some of the best long term fund managers done in 2008?-
ARTQX- (Artisan midcap group) -33% (not too bad);
BRWIX (Brandywine group) -47% (ugly);
DODGX (Dodge Cox) -45% (ugly);
FAIRX (Fairholme -Berkowitz) -33% (ugly for this superstar);
LLPFX (Longleaf - Mason Hawkins) -54% (hard to believe);
LMVTX (Legg Mason -Bill Miller) -56.5% ( bad decisions get worse);
MQIFX (former Michael Price fund) -26.5% (pretty good);
OAKBX (Oakmark Equity Income) -18% (pretty pretty good);
PRPFX (Permanent Fund -) -14.6% (gold and treasury's worked)
TAVFX (Third Ave -Whitman) -47% ( value didn't work so well);
UMBIX (Columbia Val +Res) -50% ( a big winner for many years);
WGRNX (Winters) -41% (lots of Japan and WYNN);
WWNPX (Kinetics -big winner for many years) -53% (very ugly);
Vanguard SPX Fund- 38.7%
Vanguard Tot Stk Mkt fund -38.7%
Vanguard GNMA- +5.9% (BIG WINNER)
One thing pretty clear- long term records built over many years and decades destroyed over some bad decisions about financial companies and ratings agencies.
Markets are higher but have lost about half their opening gains as the financials are lagging yet again.
Strong sectors- gold, metals, shipping, oils, energy, real estate and utils while financials, banks, internets and homies lag.
NYSE- 1300 net winners;
NAZ- 1050 net winners;
NDX/OEX both with 75 green stocks;
VIX- down 2% at/near 57.5;
Gold- up 3.6% and over $800 while crude is up about 5% at $44+;
Markets are choppy and big spike have been sold and dips have been bought in the first 30 minutes of trade- internals are very strong while financials are weak as Whitney said this morning on CNBC that banks would be bad for another 2 to 3 years- not very bullish from one of the few analysts who got it right.
Bottom line for the day IMVHO- buy dips sell rips- as a big down day seems to be off the table- bought some SSO and looking to buy DIG on a dip.
Turnaround Tuesday was the correct trade as the dip buyers couldn't hold up the market. The DJIA closed don 240, NAZ -24 and SPX -21.
Strong sectors included shipping, semis and oils while real estate, banks and gaming lagged.
NYSE- 1150 net losers;
NAZ- 950 net losers;
VIX- flattish at 59.
Tough to get traction with out the financials and they didn't rally at all - GS GE JPM BAC all traded ugly so there was a good hint that the big cap indexes were not going to do well today.
RSI (2) near 50 on the major indexes and lets see if the dippers try again tomorrow- I suspect they will.
Markets are meandering with lower numbers on the large cap value stocks in sectors such as banks, trannies and real estate while oils, ags, tech and semis lead.
Market internals- about flat on both the NYSE and the NAZ- while the NDX/OEX- aren't much different.
Up volume has taken the lead over the downs;
VIX slowly drifting lower - at/near 57;
Looking for higher prices - but focusing on the NAZ/NDX/QLD - as those seem to be the place to be along with DIG- so looking to buy pull back this afternoon on those.
Turn around Tuesday shows right on time as the DJIA is down 100 but well off the worst levels and the NAZ/NQ has already rebounded to green along with the semis - which is where all the damage was done in the after market yesterday.
Strong sectors- oils, semis, shipping and tech while trannies, real estate, banks and telecom lag.
NYSE- 700 net red;
NAZ- 300 net red;
NDX/OEX- bothe with 40 green;
Down volume double the up;
Doesn't look like this market wants to stay down as the dip buyers show early- I have bought some QLD and DIG- and will watch to see how long I want to stick with them.
VIX+ on the latest revolution.
BESPOKE with a rally analysis.
And congrats to the governor from the great state of Illinois.
Markets closed higher but well off their best levels with the DJIA about 100 off and the SPX down about 10 from the high. Also interesting how the 50 SMA for both was about the high and if you watch the pivot points - yes a turnaround at the daily double resistance level.
Sectors- best- shipping, reits, oils, metals and gaming while utils, drugs and biotech lagged.
NYSE- 1750 net winners;
NAZ- 1280 net winners;
VIX- lower by 3.3% at 58;
Up volume about 6X the down;
Crude and gold higher while the dollar was off a bit.
Looking for turnaround Tuesday tomorrow as I suspect the news on the auto bailout gets sold - providing they have a deal- if no deal - that could really be a problem for the markets.
RSI (2) level- way overbought near 90 earlier on the major indexes and closing a bit lower but way too high for short term trading.
And a change for the trend per BESPOKE.
Markets are still trading higher but well off their best levels and I suspect we will get a nice move back to the highs in the final hour of trading.
Market internals continue to be bullish and the upside volume is still 4X the down.
Sector strength found in shipping, gaming, metals and telecom while utils, brokers and drugs lag.
NDX/OEX- with about 75 green stocks on each index.
WINNERS- F NYX AA DELL BAC FWLT STLD JOYG ADSK LEAP DIS GS GM CAT DIS AXP;
LOSERS- MMM MCD WMT KO PG JNJ NVDA GENZ MRVL CELG HANS GILD AMAT BK CL BAX UNH TWX;
The 50 SMA on the SPX was not touched but it got close at abut 925 while the DJIA equivalent seemed to be resistance near the 8900 level.
As I say - looking to buy pull backs this afternoon as a close near the high would be typical.
Markets are trading higher on the heels of some positive words from the President elect yesterday and higher foreign bourses.
The DJIA +230, NAZ +37 and the SPX +23 at/near the 900 level.
Strong sectors include- metals, shipping and oils while utils, banks, internets and small caps lag.
NYSE- 1870 net winners;
NAZ- 1250 net winners;
NDX- 85 GREEN;
OEX- 90 GREEN;
VIX - down 1% at/near 59?
Up volume 6x the down;
Gold +$14 at $771;
Crude- about $44;
It looks to be a buy the dip day but watch the RUT as that tends to lead the speculative juices- NQ futs also lagging the ES-
RSI (2) levels getting a bit over bought here near 90 on most major indexes- I think tomorrow's business - turn around Tuesday-
Barron's again with articles on why the markets can/should be bought here and some pretty good rationale:
Barry Ritholtz turning bullish sort of - suggesting ETF's and 2X ETF's- such as the SSO and QLD- and looking at GOLD- getting interesting as the Fed balance sheet triples.
Andrew Barry on LUK with savvy management and cheap assets.
Laing on how to solve the foreclosure crisis. The quick version:
1) Offer to refinance every mortgage at 4.5%;
2) Make low rate mortgages available to home buyers;
3) Use FNM FRE to repackage all new loans as safe securities for investors;
4) Modify the subprimes/alt a's in arrears and extend the term to 40 years and pay down principal for severe problem buyers;
I will throw in another - offer tax credits to buyers of 5% of the amount of the purchase price up to $200,000 of the price- and only implement that for 18 months so buyers have to act quickly;
Trader Mike's charts;
The VIX and double tops;
Technical strength in the A/D line from Dr. Brett;
And congrats to NBC for their wise choice for Sunday mornings;