Can’t Keep A Good Market Down
Another tragedy struck America this morning, the
crash of American Airlines Flight 587, taking off from New York’s Kennedy
International Airport. This is another horrible loss. And the market’s
response is telling. It is recovering from a gap-down opening and sell-off.
One of the strongest things a market can do is continue to rally on negative
news.
TradingMarkets.com’s CEO Larry Connors has been
remarking on this market dynamic in his new weekly column, This
Week’s Battle Plan.
The Dow has pared by one-third losses sustained in
the early gap-down opening and the Nasdaq is coming back from a 2.5% drop to
positive territory.
The Dow is down 57 at 955, the Nasdaq Composite is up
9.22 at 1837.70, and the S&P 500 is down 1.88 at 1118.39.
The most speculative sectors are again leading this
market higher: semiconductors
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+1.79%, and networkers
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Perhaps not surprisingly, airlines are the hardest
hit area of the market following today’s crash. The airline
sector
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the biggest hit, down 2.24, or 12%, at 15.90.
The bond and currency futures markets are closed in
observance of Veterans Day.
Ciena
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with a total weighting on the index of .64%, is up over 10%, or 1.99, at
19.16. The number two maker of fiber optic gear said it met earnings and
reduced sales expectations and that it would cut its work force.
The Nasdaq 100 index has outperformed the Nasdaq
Composite by rallying as much as 45% off the September low vs. the Comp’s
36% gain. SOX components and Microsoft, from the NDX, have helped the
narrower, all-technology index outperform the broader Nasdaq Composite.
Oil
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are also lower. Oil prices had recovered as much as 20% of their precipitous
losses since September when Russia, the world’s second largest producer of
oil, said it would cut oil output in concert with OPEC to support prices.
Russia said it would cut back just 30,000 barrels a day, a small fraction of
the OPEC expectation. December crude oil
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most recent swing (from Oct. 12) Friday to encounter resistance at this key
Fibonacci level which coincides with the area of its most recent
consolidation ledge.