Watch those piggies!
Another day is underway as the traders trade and the critters play. The 'out of the gate' themes include dry financials (watch this group!), soft retail (again) and an oil service space that's trying to find some fuel. Breadth, thus far, is pancake flat, the dollar is drifting lower and gold is mining its way (I'm hearing that the buy stops were moved up to $405).
A couple of quick observations. Between Comcast's (CMCSK:NASD) sale of its Liberty Media stake (L:NYSE) and Texan's (TXN:NYSE) punt of its Micron stake (MU:NYSE), the supply side of the equation has gotten a bit more interesting. That's not to say that these isolated sales will motivate the sell side, mind you, but we must always monitor the equilibrium for potential shifts.
If you've got a chart of the S&P handy, draw a trendline from the early July highs through yesterday's close. In addition to currently tickling that line, Boo will also point out that we're at the top of the Bollinger range and at a Fibonacci level. Those inputs may or may not matter (you can always uncover evidence to support a particular view), but that's the current bear stare.
I would think that the bulls would try and probe the north side (after we closed on yesterday's highs). Still, I'm not as sure as the rest of my brethren that it's up, up and away. Everything I read, heard and saw this morning was giggly with optimism. Could it be?
If they can push 'em past S&P 1075,conventional wisdom will likely prevail once more. Still, we're due for a pause (if nothing else) and I wanna see how they act in the S&P 1060-1075 range. Watch our tells and wait for your pitch--it's out there.
I'll be back.
Daily Recap Newsletter