Are You As Bored as I Am?
Another SLOW day in the SPU pit as it seems as though every trader in the world is on vacation. The action that does occur is sporadic at best, leaving a very choppy, thin trade.
So far today, no dealers have stood out in terms of activity. Locals were sellers on the opne, and since then have gone wherever the momentum can be found. The most interesting trade is in the NDU. The simple fact is the failure to rally after CSCO’s strong earnings have left players feeling bearish. What I’ve been seeing is the money coming out of certain techs and into the financials. If this trend continues, and I think it will, I would look to sell the NDU against the 3710 level for a run to 3590. The SPU should continue to trend lightly to the downside, but without much interest. However, any settlement below 1478.50, which was the 50% retracement of the downmove from 1533-1424, should be construed as further reason to sell.
As you can tell, I have little opinion, save for the NDU, and am looking to be a scalp trader for the remainder of today.