Edited by dcengr, 04 January 2007 - 10:41 AM.
This market is like wack a mole
Started by
dcengr
, Jan 04 2007 10:39 AM
3 replies to this topic
#1
Posted 04 January 2007 - 10:39 AM
Yesterday NDX was down a lot, while dow stayed afloat.
Today the dow is down while NDX is up..
Wack a mole!
Still it says there's some weakness in the market rather than uniform strength. But there's enough strength to say the chop may continue still.
Btw, I said yesterday I thought money coming out of oil is going into tech.. probably still the case. But if oil has bottomed, the inverse may be true.
Qui custodiet ipsos custodes?
#2
Posted 04 January 2007 - 11:11 AM
From my blog...
Today's action could best be described as whipsaw city for both bulls and bears. And I don't think its done yet. There's a struggle going on right now, and my guess is that the bulls do not appear to be leading. It would appear the market can, in one day, drop some 150+ points without too many protecting prices. Then again, it appears it can also float up 100+ points in a heart beat too.
All this volatility could be a sign of a top, but the incredible liquidity has been supporting this market. It still seems complacency is running high, but since some sentiment data is running late due to the holidays, I can't base it on that.
I would guess tomorrow we're going to see a bit of down in the morning and a reversal in the afternoon? Makes as much sense as anything else right now.
Nasdaq McSum is now in negative territory, and as I said before, its not too hard to push this down with the support weakened. Dow, however, has plenty of juice left, and therefore its not until the big dow goes down that it will signal a trend change.
Today's action could best be described as whipsaw city for both bulls and bears. And I don't think its done yet. There's a struggle going on right now, and my guess is that the bulls do not appear to be leading. It would appear the market can, in one day, drop some 150+ points without too many protecting prices. Then again, it appears it can also float up 100+ points in a heart beat too.
All this volatility could be a sign of a top, but the incredible liquidity has been supporting this market. It still seems complacency is running high, but since some sentiment data is running late due to the holidays, I can't base it on that.
I would guess tomorrow we're going to see a bit of down in the morning and a reversal in the afternoon? Makes as much sense as anything else right now.
Nasdaq McSum is now in negative territory, and as I said before, its not too hard to push this down with the support weakened. Dow, however, has plenty of juice left, and therefore its not until the big dow goes down that it will signal a trend change.
Qui custodiet ipsos custodes?
#3
Posted 04 January 2007 - 11:50 AM
LOL!
Worldwide liquidity is just so great I think we will see this until the Fed and FCB have to face a blow off in commodities. We aren't even close to that. Now that commodities are correcting we have the context for Fed easing.
#4
Posted 04 January 2007 - 12:03 PM
Btw, I said yesterday I thought money coming out of oil is going into tech.. probably still the case. But if oil has bottomed, the inverse may be true.
Agree.
Saw some big buys on junk semi's today - They pushed them up but retail won't take them any higher.
Don't think Oil has bottomed yet. The inventories were higher than expected, and price is around $57.
I think the selloff in Oil will carry through to Friday close
KC Scott Blogs at IBC: http://ibankcoin.com/kcscott/