Today's prudentbear -->
Market Summary July 09, 2001
Posted Daily Between 5 and 6:30 PM EST
by Lance Lewis
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Asia was lower last night but Managed to bounce off its lows late in
the session. Europe ended down a hair after similarly bouncing from
early lows, and the futures in the US were a little higher. We gapped
up and immediately began to trade higher. After about an hour of
rally, things ran out of gas, and we revisited the lows only to bounce
yet again to a slightly higher high that afternoon before slowly rolling
over late in the day to end back near the mid-levels of the session.
Basically, it was one long yawn. Volume was OK (1 bil on the NYSE
and 1.4 bil on the NASDAQ.) Breadth was slightly positive on both
exchanges.
NCR warned and said they were reevaluating their second half
outlook (I doubt it will be in a “good” way.) NCR was hammered for
14 percent, so bad news continues to matter despite the feeling by
bulls that all of the bad news is “priced in.” Semis were a little lower
on the day with the SOX slipping a hair. After Friday’s drubbing, the
bounce in the semis was pretty weak to say the least. IBM managed
to fall another couple percent to take out Friday’s low. SUNW
bounced 8 percent off an analyst tout… blah blah blah… It was pretty
mixed, in essence nothing really happened. Financials were mixed.
The BKX rose a hair, and the XBD fell a percent. The brokerage
stocks continue to trade like real dogs, and that’s never a good sign
if you’re bullish. Even today they opened lower and stayed lower
throughout the day even as the rest of the market made a halfway
attempt at a rally. GE was flat.
Oil fell 62 cents. The XOI fell a percent, and the OSX fell 4 percent.
Gold rose 40 cents, and lease rates were quiet. The HUI was flat.
The US dollar index traded on both sides of unchanged but ended
slightly in the red. The euro was up a hair. This weekend’s G7
meeting was a big fat yawner with the US insisting that magically
growth would ramp un in the second half but Europeans disagreeing.
Sir Edward George, chairman of central bank governors from the
Group of 10 leading nations, said today that a strong dollar was
harming the US economy and fueling inflation in Europe. So, we may
be starting to see the early signs of discord over the seemingly
invincible confetti known as the US dollar. Treasuries were a little
higher on the day.
Today’s bounce was pretty anemic. The bulls need to step it up if
they want to get the momentum monkey going into expiration, which
they still have plenty of time to do. Nevertheless I am still leaning
towards more weakness in the near term. |
