Sentiment Indicators Suggests Further Choppiness
With the bailout worries of the Big Three temporarily on the back-burner, equity markets today focused with renewed interest on last week’s collapse amid fraud of Madoff Securities, larger than before acknowledged losses at Chicago hedge fund Citadel Investments, the suspension of the Arena League’s 2009 football season and the Apple downgrade by Goldman Sachs.
As with Fridays action after the Madoff revelations and the failed Senate vote on the auto-bailout, selling off today’s bad news was checked by value buyers sparked by new fangled dollar weakness and the expectation tomorrow of another rate cut by the Federal Reserve. Gold was a chief beneficiary of systemic uncertainty with prices on Comex rising to their highest level in two months and the Euro gained over 3 cents on the dollar in one of the largest one day moves in the currencies decade long history.
Sentiment indicators remain largely in neutral territory suggesting further choppiness in a thin pre-holiday trade. Index products basically made complete reversals of Friday’s gains with last week’s strength in mid-caps and tech becoming today’s worst performers. For more information go to marketnewsflow.com.
Kurt J. Eckhardt has been trading since 1982 when he began his career as an active floor trader in the CBOT Treasury Bond pit. Kurt is President of Eckhardt Research and Trading and its subsidiary Agility Trading. Agility offers both individuals and funds cutting edge technical strategies along with high performance instruction. For more information go to www.agilitytrading.com or email Kurt at kurt@agilitytrading.com.