Stocks Get Set for a Showdown

By Todd Harrison  AUG 02, 2010 9:05 AM

S&P 1115 is the line in the sand.

 


It’s just another manic Monday as the combination of the reaction to Friday’s soft GDP, “stronger”-than-expected HSBC (HBC) results, and the not-as-bad-as expected China PMI combine to give the tape a green tint in the early going.

All the while, we remain embroiled in a technical tetherball that would make Napoleon Dynamite blush.

As measured by the S&P, the fourth lower high remains in tact and the 200-day moving average resides above; both are bearish and both come into play in and around S&P 1115. As discussed last week on the Buzz, however, some stealth positives have been lurking in the shadows:
 


For my part, I continue to trade around the S&P (in real-time on the Buzz - free trial) with an eye towards incremental returns. I almost pulled the trigger on a slew of exposure Friday morning but I was still reeling from Sockgate 2010.

Hey, I may be barefoot, but I'm still honest. Always honest.

Some Random Thoughts
 


R.P.

Position in S&P