| In my opinion Market reaction on Californian utilties drawing on banks lines of credit is hitting the BKX hard, the employment report with prices paid slightly higher is another concern, the Fed rate cuts is start of change of stance, now the problem is that market reads new warnings as spate of new bad news and is ready to ignore good news like NOK taking position of number one telecommunication company or like yesterday BMCS better than expected numbers or T emrging as a valuation with 30$'s, the naysayers are quite a few and the short interest is huge, we need to see that we trade off SPY and for that key supports are important to maintain we broke through the 1328 straight otday our next level is 1300 or even 1292 I would like that test of these today should be successful and from that we should bounce. Assuming that californian worries are rumors and the BKX index gets supported here, I see no reason that 1300 support may not be maintained, I believe that housing starts number shows a far better economy than what market tends to think, the good news at the moment are being ignored even more warning expectations are little on extended lifeline,and this last Friday of the trading week has a classic dual between the longs and the shorts and SPX trade supreme, the contraction and the reduced economic growth is well built within the market and I think that market that trades on future anticipation will recover from the pressure today..one needs to look at housing starts, the NOK's the emplyoment report showing little higher prices paid and claifornian utilities, the net effect is not dilution of the long term impact of the easy money but a kneee jerk reaction to put the bear in control that I will only think is possible if 1272 is out until that point one should be nimble in long puts and try to avoid overnight long put positions, I will trade a break below 1288 to 1274 but I will look at this as a market that is confused.. |
