MV Hunting Report: Bears Declare Open Season on Bulls
Rain or shine, we review the day's biggest stock stories.
The overall market didn't really respond to this; the banks were down, but we still saw strength in other sectors, namely commodities. It was a wide spread rally, from Transocean (RIG) to Potash (POT) to Freeport McMoran (FCX) - even the hated Dryships (DRYS) had a nice day.
As for the S&P 500, today's action resembled the rest of the week: The bears get the market down, then Hoofy kicks in and starts buying. Boo comes across Mike Tyson-style and sell into the close. Maybe this current boxing match between the bulls and the bears is presaging much-anticipated Hatton vs. Pacquaio fight this weekend.
On Today's Buzz and Banter, Professor Jeff Cooper gave his thoughts on the S&P:
"666 low, 888 high? Get out the pointed hats? The 2002 closing low I believe was 777 if I'm not mistaken. The DJIA low in 1982 was 777. Who know Hoofy and Boo drew to 3 of a kind at the tables, Stevie?
"Since the S&P may have squared out perfectly, 720 degrees up from the low (as offered yesterday) at 888 is the March 666 low . Then what level represents 360 degrees up from low (and by definition down from yesterday's high) should a correction play out?
"774 - The S&P put itself in a stronger position when it recaptured 50% of the all time at 1576 which is 788. So, a pullback toward 774 would test this level and at the same time undercut and flush the 50 DMA."
774? I think the bears would be satisfied with a pullback to that level - I know I would.
All right, Minyans - what a week. I'm beat. I'll be at the new Yankee stadium this Saturday watching my Angels take on the much-hated Yanks.
Have a great weekend!
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