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Minyanville's T3 Daily Recap: Window Dressing? Market Bounces Hard Into Close, but Tech Lags


The out-of-nowhere feeling of the rally certainly caught a lot of people off-guard.

The market opened sharply higher this morning based on three positive morsels: better than expected GDP, lower than expected jobless claims, and an affirmative vote in German parliament to increase the EFSF. But those thinking that gap up would ignite another rally were disappointed -- least until the last four minutes of trading.

Stocks sold off for most of the day, crossing below yesterday's close, but rallied sharply into the close. Window dressing, perhaps? We'll never know, but the out-of-nowhere feeling of the rally certainly caught a lot of people off-guard. The Dow finished 1.3% higher, while the Nasdaq lagged significantly, finishing down 0.43%. The market has lost much of its leadership in the past few days as the stocks that performed well in the past few weeks showed relative weakness.

Could Apple (AAPL) be feeling the heat from Amazon's (AMZN) Kindle Fire tablet? Both were weak intraday, but AAPL has been noticeably heavy the past three days. It finished down 1.6% today. Netflix (NFLX), another former tech leader, continues its stunning fall from grace. The stock has been unable to sustain any significant bounce since it reported a greater-than-expected drop off in subscriber-ship following much publicized price hikes. The stock is down 63% from its highs in early-mid July.

The Chinese internet sector also sold off hard amid news that the US Department of Justice would be investigating potential accounting irregularities in China-domiciled stocks. SINA Corp (SINA) closed well off lows but finished down 9.7%. (BIDU) closed down 9.2%.

The retail sector, especially high-end, also sold off hard today. Tiffany (TIF) and Coach (COH) both closed down more than 6% and created major technical damage on the chart. Ags also continue to be weak, with Mosaic (MOS) breaking through pivot lows while CF Industries (CF) and PotashCorp (POT) fell to test those pivot levels.

Peter Renzulli has no relevant positions.
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