Market Comment: The Bloomberg overview this AM seems awfully gloomy, panicky even, with its numerous references to overseas negative indices, all this despite the falling oil price, the blowaway BofA earnings and the possibility that the overseas indices are just now responding to Friday's NY decline.
In fairness though, the breakdown in the charts does look about as spooky as did AMD's $100M flash operating loss.
Come to think of it, if one is a believer that AMD is a market leader, then AMD's Q1 "flash attack" might have set off the current bout of negativity.
Bearing in mind that it is innovative companies like AMD that are now the trend setters, good and bad, it may be interesting to keep an eye on AMD's price action as a lead indicator in future market moves.
Hopefully, AMD can bounce of $15 or whatever its low is going to be today or tomorrow and the rest of the market can follow a day or so later.
Within the context of the above, once AMD completes its flash IPO, the likelihood of a fairly rapid recovery to test its 53-week high at $25 would not seem unlikely nor would a recovery in the DOW, S&P 500, Nas and SOXX to much healthier heights as signaled by AMD's likely ascent.
Anyway, markets aren't as bad as Bloomberg seems to be currently painting them. Look for a robust recovery by week's end perhaps buoyed by TXN tonight, INTC tomorrow and AMD's Dual Core kick off on Wednesday.
My guess is that as panicky as Bloomberg sounds this AM, they will be as euphoric a week from today.
Just my view, though. |
