Todd Harrison: Bank Stocks, Tech Stocks, and Headline Risk
Musings on what's important right now.
Here are my most recent thoughts on the market as of this morning, in no particular order:
We highlighted the action in the banks yesterday and again this morning (subscription required); so long as the piggies poke higher, the tape should follow.
With BKX (INDEXSP:BKX) 71.50 and S&P (INDEXSP:.INX) 1850 underfoot, the respective technical targets are around BKX 77 and S&P 1960.
Is that gospel? Nope; there is no such thing. It does, however, provide a context for risk management for those who spend their days managing money.
The bulls would feel a lot better if the transports were tagging along, but thus far they're not -- TRAN (INDEXDJX:DJT) 7600 is the level of lore there.
High-beta tech -- ex-Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) -- trades firm as well.
You know what doesn't trade well? Twitter (NYSE:TWTR), again.
And market breadth is negative, which is a bit surprising given the tone.
Does headline risk remain? You bet it does. Unfortunately, China and Russia are probably closer to the beginning of their news cycles than the end.
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