Market Churns on Lack of Government Credibility
From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.
The major indexes declined for the 3rd straight week ending 1/23/09 in the correction from the 944 (1/6/09) rally high off the 11/21/08 low of 741. The initial rally was +27.3% in 29 days. The small cap and mid-cap indexes have led the major indexes off the 11/21/09 lows, and as of yesterday the MDY is +25.4, IWM +22.3., SPX +14.1, and the INDU +9.7.
The leadership so far in 2009 has been the Industrials, Health care, and Tech sectors, while the Financials have been in a mini meltdown led by Citigroup’s
(
C |
Quote |
Chart |
News |
PowerRating) and Bank of America’s
(
BAC |
Quote |
Chart |
News |
PowerRating) never ending capital needs, and are now essentially subsidiaries of the new Socialist Government in the white house. The hedge funds have been net sellers of stock in 2009, as have the foreigners.
This week is month end, and seeing that the C and BAC fiasco’s of last week didn’t send the market to new lows, the bias remains up into month end and the first few days of February. The SPX has ranged out the last 8 days between 858-804, so the previous trading range resistance from 851-857 remains in force, followed by the 919 high end of that range.
NYSE volume declined for the 4th straight day to 1.17 bill shs, with the VR positive at 70, and breadth +1118. The SPX is up 3 straight days, and went out at 845.71, which is not much of a bounce from the 827.50 close last Thursday. The VR and breadth were positive at 70, and +1118. The market is not ST-O/S as the 4 day MA’s of the VR and breath finished neutral at 53 and +161.
I see no immediate catalyst which would accelerate a near term sustained move in the market, aside from a possible bounce into month end, and the first few days of February.
Have a good trading day!
Click here to find full details on Kevin’s courses including Trading with the Generals with over 20 hours of professional market strategies. And for a free trial to Kevin’s daily trading service, click here.