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: Hailstorm for Big-Name Tech


Rain or shine, we review the day's biggest stock stories.


Today was a wacky day in tape town. The financials led the early upside move on news that Barclays (BCS) was shoring up its capital position. There was also a rumor (though we don't do rumors in the 'Ville) that gave banks a lift.

Here's what Todd Harrison said on the Buzz.

"There's (unconfirmed) chatter around that the government is in the process of "de-hypothecating" shares they own in the financials, which means they wouldn't allow any shares owned by the government to be borrowed (and subsequently shorted)."

Buy the rumor, sell the fact? Well, this never became a fact - but the market started to sell off around 2 p.m. EST. Tech led the downside move, and names like Intel (INTC), Microsoft (MSFT) and Amazon (AMZN) traded lower.

"The tape just felt weird today," said Terry Woo. He noticed the positive 2-to-1 market internals as the sell-off ensued late in the day.

What happened to this morning's gains? Was this just profit-taking? Is the bear-market rally now over?

The easy answer to all these questions: Profit-taking and exhaustion. A good example of this is the BKX, the Bank Index, which was up 40% over the last 5 days. Many bank stocks are up 70% to 100% during that time.

Take a look at Bank of America (BAC), Wells Fargo (WFC), JPMorgan (JPM) - these all made monster moves. If I bought these near the lows, I would consider selling them here.

Tomorrow will be an important day - not because it's Turnaround Tuesday, but because it can be seen as a pause day for the market. I'm curious to see if buyers come back into the market. Smita Sadana had an excellent Buzz today about the S&P 500's recent attempts to recapture its 50 DMA:

"In early Jan 2009, S&P's momentum's was so great that it actually pushed through the 50-dma and stayed above it for a few days.

"Since then there have been 2 attempts at the 50-dma but SP-500 has been unable to overcome that serious resistance.

"The question that comes to mind is given that the lateral resistance and the 50-dma would probably collide soon, will SP-500 be able to close above it? "

Click to enlarge

It will be a battle if and when the 50 DMA comes into play. As for tomorrow, traders will be watching economic data before the bell - the Producer Price Index, Housing Starts, and Building Permits, all of which are out by 8:30 a.m. EST.

Well, Minyans, I'm off to fill out my Minyans March Madness bracket. More to come later in the week.

You can now follow Minyanville on Twitter!

< 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.

Featured Videos