A definite short below 2360 on NDX rather even a break of 2378 is playable by nimble players, I am on watch on three indexes one BKX 743 low , the second DOT 641 and NDX 2372 area SOX breaking 502 will give you indication that strong economy helping tech argument is being thrown in dust bin pre FOMC so that will also help in establishing a momentum play on the down side , if these get hit and we see today's low on SPZ taking out we need to buy a lot of puts 1260's... I think we can trade this break if it comes ofcourse every one who has looked at the number is negative! One thing is for sure the economic strength will help corporate earnings but market needs to discount the 5th meeting as such today they can sell hard on news of this strong number but i will only short below my levels, I am watching Treasury to give me intial signal of a break like 6.15 being taken out//
NEW YORK, Oct 1 (Reuters) - Wall Street stocks fell after the September National Association of Purchasing Management (NAPM) index jumped to a reading of 57.8.
Economists had expected the index, a measure of business conditions in the manufacturing sector, to edge up to 54.3 from a reading of 54.2. A reading above 50 on the index indicates expansion in the sector.
Following are analysts' comments regarding the report:
BILL MEEHAN, CHIEF MARKET ANALYST AT CANTOR FITZGERALD:
``The topline number is a lot stronger than expected. Whoever ... was bidding up the S&P are getting slammed. We're heading south. The dollar's getting crushed.'
BRYAN PISKOROWSKI, ANALYST AT PRUDENTIAL SECURITIES
``Stronger than expected, I think it raises the chance for the Fed raising rates next Tuesday.'
GEORGE RODRIGUEZ, SENIOR VICE PRESIDENT, EQUITIES, GUZMAN & CO., JERSEY CITY, N.J.
"This is an extremely negative signal to the market right now.
``...This, on top of the numbers that came out this morning (August U.S. personal income and spending)... are causing concerns about inflationary pressure leading into next Tuesday,' when the Federal Reserve's rate-setting panel meets. |
