Two Ways: S&P Rally Overdone?
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S&P 500 Rally: Believe the Hype?
After a 14% rally since the start of earnings season, analysts are beginning to get a little bearish on the S&P 500. According to Bloomberg, the benchmark index rose nearly 6% last week, wiping out much of 2009's losses. And so far, over 200 companies have risen at least 50% since the March low. But with most catalysts out of the way, many analysts think a move higher would be unrealistic and that US equities currently look fairly valued.
For a view from the other side, see Op-Ed: The Crisis is Over - For Now.
From the Bull Pen: Should equities pull back, bulls buying dips can look to Freeport-McMoRan (FCX). Support near $46 -- and gapfill near $44 -- could be opportunities for entry. Sell stops can be set below those levels.
From the Bear Cave: Bears can eye Baidu (BIDU). Professor Jeff Cooper mentioned this play Friday on the Buzz. A buy stop can be set 2% above entry.
Quick Check Around the World
Asian trading closed with the Hang Seng -1.74%, India -1.63%, Nikkei 0.20%, Shanghai -1.75% and Taiwan 0.97%.
Glancing towards Europe, we see the CAC -1.39%, DAX -0.56%, FTSE 0.75%
As of 8:10 AM EST, S&P Futures are trading -11 to 913.00, and Nasdaq futures are -16 to 1406.00.
A Look at Commodities
Over in commodities, crude oil is trading -1.50 to 57.13 while gold is -2.50 at 912.40 this morning. Silver is -0.145 to 13.81 and copper -7.00 to 207.70.
The dollar index is +0.2100 to 82.8500.
No economic events scheduled today but click here for the full trading radar.
Welcome back, Minyans. Good luck and have a great day!
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