Doing the Morning Dew
I feel so alone!
It's an active morning in the city of critters but I wanted to get a quick missive out to my fellow Minyans. As it stands, the early morning futes are marginally green and that leads us to the same question we posed last Thursday: Is this on opportunity to "get involved" or, on the heels of positive earnings, is this a "sign" that sellers abound? Just another thing to make you go "hmmm" as we prepare for the nutty nut.
In research news, Opco downed RF Micro Devices (RFMD:Nasdaq); JP Morgan upgraded UPS (UPS:NYSE); Lehman boosted ChipPAC (CHPC:Nasdaq) while booting Jefferson-Pilot (JP:NYSE); UBS Warburg punted Juniper Networks (JNPR:Nasdaq); Dresdner downed Infineon Technologies (IFX:NYSE); Merrill lifted United States Steel (X:NYSE); Morgan Stanley kicked SAP (SAP:NYSE); Smith Barney downed Everest Re Group (RE:NYSE) and CS First Boston upgraded Continental Airlines (CAL:NYSE), BorgWarner (BWA:NYSE) and Pepsi Bottling Group PBG while downgrading Southwest Airlines (LUV:NYSE). Love for sale!
Important levels include our S&P 905 and NDX 1100 support zones (past resistance). On the upside, S&P 918ish (trendline) and S&P 930-935 should offer a stiffer test. In tech, NDX 1125ish (Razor Burn top) is the next technical ceiling. Lest we forget, our ol' friend BKX 800 is back in sight and while I'm suspect of its ability to clear that hurdle from such an extended posture, it's something to keep an eye on.
The breadth told the tale yesterday and it remains a focus today. Also watch the dollar (yes, it matters), the semis (SOX 340 first support), the financials (twisty and extended), the retailers (consumer proxy), our levels and Europe (the German DAX is now down).
We've discussed the potential for a false breakout and that should be factored into your mix as a potential outcome. Some would argue that, with so many traders using the same technical stops, they NEEDED to trigger before any downside could occur. Saucy? Yes, Béarnaise, but if there wasn't risk, it would be called winning -- not trading.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter