Well Clint, looks like the financials were right. Do you have a list going (or are you already long). I don't like to buy into this strength, but looks like we may have legs on this move.
Some I will be watching: mer, slb, vtss, bsx, amat. A different list because I am tired of the old csco's dells', and msfts.
A good read:
The Day Ahead: A most important session
Well, the great bull market delivered on its promise following its very
dramatic late flourish going into yesterday's close. The fact that the
market actually rallied so strongly inspite of seeing the highest
levels of interest rates we have seen in since the middle of last year
and is testimony to what I have been saying for a while in these pages.
The market continues to act strong in the face of sharply rising
interest rates and may continue to do so for a while.
The fact that the economy has been overdelivering on performance in a
way puts something of a safety net under the market and as also
suggested, if we were to actually rally strongly ahead of Friday's
employment report, it would be a very encouraging sign. So what will
the actual news do for Bonds and the market. That is a tough call, but
our original thoughts that the market might just dip below the 120
level on the March US Treasury Bond futures, might just be the ticket,
coinciding with a yield roughly equivalent to 5.75%.
The news could come in a bit better than expected, say 300,000 new jobs
and that might be interpreted as good for the market, indicating a not
too strong or hot economy. A higher number might temper things a bit,
but the key really will be the performance of the bonds.
The key development today was a sharp rise in the Utility index, up
4.14 points to 297.11. Why is this happening as Bonds are making new
lows? Sometimes one sector will lead the other. If Utilities are
forecasting a rally in Bonds tomorrow, this market could explode
higher.
Bonds were giving off the same kind of preliminary buy signals today
that Dell saw late yesterday. I am just using Dell as a similar example
of something that has been recently beaten up like Bonds.
Realistically, the most logical play might be a sharp spike down on or
before the news followed by a sudden reversal, that would really lead
to a very strong rally.
The technicals of the market tend to suggest that a continuation of
today's strong rally is on the cards. Nothing is cast in stone, however
and Friday will likely be a very important day, because how tomorrow
plays out will definitely set the trend for quite a while. And, if that
trend remains positive, the projected length and intensity of such a
rally will have CNBC hurrying and scurrying around trying to arrange
for special guests to appear on their once in a lifetime 10,000 Dow
Special show. Solid follow-through action could make this a reality.
|
