Pop Goes the Weasel!
Well, so much for a quiet August Friday! I suppose that if I were looking for maximum bang for the buck, I'd release good news when it's whisper thin too! The Intel (INTC:NASD) announcement has spurred a feeding frenzy in pre-market trading and it's "game on" for the gorillas. Thus far, the macros have bought seven figure size in the ETF's and they're still going.
While there's a part of me that thinks this might prove to be a super fade (bear market rallies end on good news), discipline dictates respecting the stop levels we've identified. If S&P 1010 ticks during regular market hours, the lone bear appendage that we added yesterday (at S&P 1007) will be removed. The thin conditions make this news more difficult to "game" than usual and now, more than ever, discipline must trump conviction.
With that said, please remember that tech in general, and the semis in particular, have rallied smartly into this news. With the index up 10% this week alone (not including this morning's spike), the potential exists that some of this news is discounted. It's a spicy assertion, I know, but we've seen nuttier things happen. That doesn't necessarily mean it's today's business but it's something to put in the back of your brain.
Away from tech, the financials will be the obvious focus as they've been holding the market back. With the fresh Freddie chatter (FRE:NYSE) in today's Wall Street Journal, the smoke continues to seep out of Pandora's box. Citigroup (C:NYSE) remains a big board tell as it's a financial supermarket. If the broader market is to "go," Citigroup has to get involved.
I've gotta hop as the day just got much busier and the froth got much frothier. Good luck today, Minyans, and keep your head on. Emotional decisions always have a way of coming back and biting you in the can.
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