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: A Flurry of Catalysts on Turnaround Tuesday


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

News broke this morning that the government was in talks with Citigroup (C) to expand its stake in the bank. Surprisingly, Citigroup was up almost 20% on the news. It's hard to imagine that a $0.19 move on Citi is good for 20%. Even more surprising, almost all of the banks were up today, as nationalization chatter finally slowed down.

Alas, Green Monday didn't last long, as an up opening was quickly met by sellers. Traders were content to give back merchandise: It seems no one wants to own em' into the lows. The low of 741 has withstood today's onslaught, as the market closed at S&P 743.

After 6 straight down days, the market may be getting a tad oversold. Here's the view from Kevin Depew, using TD technical-analysis techniques.

"Just a reminder, while I briefly have access to a computer here, that a low below 741.05 (basis SPX cash) will perfect a monthly TD-Sequential buy setup. As well, because we have not had a higher close since breaking below the 777 level, there is no way to "qualify" that as a break.

"This is the most bullish near-term scenario: That we perfect the monthly buy setup without qualifying a break of 777, even as we are recording buy signals on daily and weekly SPH9 pit."

You can't nail the bottom; you can't sell at the absolute top. For readers looking for an oversold rally -- and we are fast becoming oversold -- today may have been a good day to start small positions. The best setup could happen tomorrow, as I think a gap lower into Turnaround Tuesday could be met with buyers.

Here's Smita Sadanda's take: "An ugly close like this warrants caution. While indicators are getting very oversold now, it doesn't preclude a Tuesday morning drop before a pop."

I always like to trade off catalysts, and Turnaround Tuesday is full of them. Tomorrow morning, traders will be met with economic data: S&P/CaseShiller Home Price, Consumer Confidence, and the House Price Index. In addition, there's a good chunk of earnings reports before and after the bell.

Before, we'll hear from Dominos (DPZ), Foster Wheeler (FWLT), Home Depot (HD), Heinz (HNZ), and Target (TGT). After the bell, First Solar (FSLR) and Wynn Resorts (WYNN) will report.

For those who use Twitter, you can now follow Minyanville.

Have a great night, Minyans!
< 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