I think yesterday sell off in internets was the cause of decline in Techs and Comp- NDX, IBM CEO speech spooked the internets, the assertion that IBM has made serious inroads in e-business and has better prospects than many of these internets company diverted some serious money in IBM, IBM gained 18 billion $'s in captilisation and also received a target revision to 270$, I would think it could hit as high as 300$.. the stock has lot of positive momentum, DOT sold off from 566 it was not able to hold at htat band of solid resistance, if the numbers are in line today I would expect DOT to retest 560 area and if it fails once again to close above this level we may see that eroding momentum may lead to serious erosion in internets.. Right now the issue in front of internets is to take out this resistance above 560-66. I think that BKX roared up from lows and will cross 930 to hit 952 high, I also see that drugs finally made a move, the list I highlighted yesterday saw some good movement, the drugs were behind a solid rally in FTSE on Thursday. I would assume that some of these companies are about to take off.Like OSX I do see opportunity in this sector..
Bonds have rallied and would rally solid if CPI confirms the number yesterday, I would assume that any surprise would not impact the market hard, I see a good reason to long July 122, this strike premiums are most to benefit and has maximum leverage, I think that bonds can see 122 in four weeks if present data continues.. |
