Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

MV Weather Report: Is Tech a Sign of the Coming Storm?

By

Rain or shine, we review the days biggest stock stories.

PrintPRINT
Every release is better than expected, as is every economic datapoint. The bears just can't win here. Today's story was the better-than-expected stress-test news - which were supposed to come in tomorrow and Friday.

This morning, traders were greeted with headlines saying Bank of America (BAC) needs $34 billion in capital - and yet the stock closed up 17% for the day. JPMorgan (JPM), American Express (AXP) and Bank of NY Mellon (BK) reportedly don't need more capital. Citigroup (C) needs to raise $6 billion; Wells Fargo (WFC) needs to raise $15 billion.

The market loved this news, taking all the banks up. Surprisingly, the weakest area of the market was tech. Apple (AAPL) traded lower on the day, and Amazon (AMZN) struggled as well. These stocks led the initial move higher, and I find it interesting that they're starting to go against the market. Could this be signaling a pullback is finally coming?

Here's a Buzz by Professor Jeff Cooper.

"Ever since the S&P hit 888/889 I have thought that other than intraday longs were high risk trades because time and price appeared set up for correction.

"888/889 is 720 degrees or two full cycles of price or squares above the March 6th 666 low.

"Moves come in 90 degree increments so what is the next 90 degrees up from 889?

"919/920.

"It is interesting that 920 resonates off the date of the low, March 6th. This is what is meant by a time/price square out.

"Of course, not all square outs are highs and lows, but nearly all highs and lows are square-outs.

"920 is 810 degrees up from the low. Does it represent a 90 degree overshoot above the 720 degree advance?

"I don't know. But a move back below the opening range breakout (ORB) or approximately 913/914 could be a warning sign and a signal to lock in some unrealized gains and put on a few shorts while only a negative close today would indicate that the square out is offering any significance as to today's trade."



Click to enlarge


Oddly enough, the high for the day on the S&P was 920, and it closed at 919. Toddo has been saying that the S&P has room to run to 950. Every day, we get a little closer - and it looks as if he may be right.

It's tough to be long here, but you could also get whipped out shorting. For now, the sidelines maybe optimal.

All right, Minyans - have a great night!
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE