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.

Will This Rally Stick?


S&P may be poised for further uptick.

Over half the S&P 500 has now reported earnings, and it seems the market has shifted its focus to what Washington will do with regard to a stimulus package.

Early morning trading was dominated by the banks. Poor earnings from PNC Financial (PNC) led the regional banks lower. JPMorgan (JPM), Wells Fargo (WFC) and Bank of America (BAC) didn't help the sector: All made greater than 5% downside moves before recovering late in the day and closing off the lows. Professor Bennet Seddaca buzzed his thoughts on the regional banks earlier today:

"As I sit here and watch CDOs being downgraded by the thousands, many large regional banks (Regions Financial (RF), Fifth Third (FITB), Huntington Bancshares (HBAN), SunTrust (STI), Marshall & Ilsley (MI), among many others) act like the world is about to end. And the unemployment picture. And the debt picture.

"I see futures bidders show back up. Yep, at critical levels. Without regard to price.

I sense 'the Hand' is back."

The hand Bennet is referring to is the curious contra-hour bid in the market. Yes, the late-day rally caught many traders by surprise. The bigger question is: Will this rally stick?
Professor Cooper also weighed in with his thoughts:

"From where I sit, other than the pattern and the cycles, I believe a positive tell that points to a better than average likelihood of a multi-week rally.

"Is the change in character evidenced by names like Myriad Genetics (MYGN) grinding higher on earnings this morning. Would that have happened last fall? Ditto Amazon (AMZN). There may not be a big appetite for risk, but the taste buds are aroused.

"I continue to think that a breakout this week back above 836 (on a close) and particularly trade above 853 (near the 20 DMA which is declining) is destined to succeed for a multi-week rally."

If you follow Cooper's methods, the S&P may be poised for a rally phase after closing today at 838.

Tomorrow before the bell, we have some large companies reporting earnings, namely Clorox (CLX), Phillip Morris (PM), Kraft (KFT) and Ralph Lauren (RL). Check out Jeff Macke's trade in RL today for more.

After the bell tomorrow, Cisco (CSCO) and Visa (V) report earnings. I would pay close attention to what Visa has to say with regards to the consumer. The Street currently has EPS at $0.66 on revenues of $1.65 billion.

Have a good night, Minyans!
< Previous
  • 1
Next >
Position in SSO

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.

Featured Videos