MV Hunting Report: Gunning for a Correction
Rain or shine, we review the day's biggest stock stories.
Today's sell-off was across the board. The market was led lower by big industrials: Caterpillar (CAT), General Electric (GE), and John Deere (DE). The big tech momentum leaders were also weak, something mentioned here last week. See Google (GOOG), Apple (AAPL), Research in Motion (RIMM) and Amazon (AMZN).
Today on the Buzz and Banter, Professor Jeff Cooper gave his thoughts on the direction of the market and a possible sea change.
"While the S&P has officially turned its Weekly Swing Chart down this morning on trade below last week's low of 926. 45, checking an hourly chart of the index seen here from my evening report on Friday shows a confirmed M A top on the hourlies.
Click to enlarge
"How was it confirmed? By a break of the 'feet' of the M. The pattern projects a move to the low 900s.
"If it plays out that way, it will be a conspicuous change in character for the short-term trend as the 2 previous weekly downturns defined low almost immediately in terms of time and price.
"Perhaps this third weekly downturns will be a charm for Boo."
Now that the weekly swing chart has turned down, what's up next?
Tomorrow, traders will be hit with a barrage of economic data. Starting at 8:30 a.m. with the Housing Starts, Building Permits, and PPI; Capacity Utilization and Industrial Production at 9:15 a.m. Before the bell, Best Buy (BBY) will report earnings.
Tomorrow is also Turnaround Tuesday, so heads up on that front -- is it really as easy as buying overnight? Let's hope not.
On a final note, congrats to Laker Nation on last night's big championship win. It was a long time coming for those fans who stuck with the team after the Shaq/Kobe debacle.
Have a great night, Minyans!
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