S&P Watch: A Possible Surprise to the Upside?

Sean Udall  Jun 23, 2009 2:05 pm

S&P Watch: A Possible Surprise to the Upside?
 
Moving averages, other indicators all reading oversold.
 

 
I’m still focusing on names more than on market action, but on certain days -- like yesterday, for example -- the names submit to the market gods. The good news is that many individual names are much more oversold than the market, and may find a firm support point before the market does. Frankly, that's what I’ll key on next.

With regard to the Federal Reserve, I think we have a 75%/25% scenario here: I believe its market talk will say we're fully committed to funding and backing resumed growth. And if this happens, we could have our technical analyses align with a generally bullish tone from the Fed.

So the flipside of the current corrective action is a surprise to the upside. In the meantime, I fully expect the pre-announcement season to be very light on the downside, and either good or better than expected (e.g. Marvell Tech (MRVL), Intersil Corp (ISIL), Texas Instruments (TXN), and so on).

The next group likely to start guiding higher is the banks. So while the current market rules still make for treacherous navigation -- and the negativity bubble is once again rapidly ballooning -- the economic, earnings, and structural dynamics are simultaneously heating up.

I would call this a battle royale in the making.
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06-23-2009, 2:23 pm
I cannot believe anyone can have any faith whatsoever in any words the fed or government issues....

after the sub-prime 'well contained' fiasco, I really don't know how they can open their mouths without falling about l
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06-24-2009, 8:54 am
Sean: Your comment about the lack of SEC action on naked short sellers is absolutely correct! The multitude of complaints filed with the SEC have never been answered, despite overwhelming evidence that some people should be wearing handcuffs! Nake
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