Hold Shorting for Now
#1
Posted 21 February 2007 - 09:15 AM
#2
Posted 21 February 2007 - 10:07 AM
#3
Posted 21 February 2007 - 11:06 AM
#4
Posted 21 February 2007 - 12:24 PM
The energy should continue to bounce
http://ichart.finance.yahoo.com/z?s=^GSPC&t=1d&q=&l=off&z=m&c=^IXY,^IXR,^IXE,^IXM,^IXT,^IXV,^TXV,^IXB,^IXU&.png
Now, let's see whether the rest of the prophecy will come true...
- kisa
#5
Posted 21 February 2007 - 12:46 PM
Before the bell, total CPI for January rose 0.2%, reflecting the fact that falling energy prices remain a factor in pulling down overall inflation rates. More notably, however, core CPI rose 0.3%, the biggest increase since June. That pushed the year-over-year increase in the core rate to 2.7%, clearly above the Fed's desired range.
Even though the 0.3% rise in Jan. core CPI may prove to be a one-month aberration, since the core rate had been up just 0.1% in each of the prior three months, it does signal that inflation pressures may not have moderated as much as the market had hoped, especially following Fed Chairman Bernanke's surprisingly dovish commentary last week.
Diminishing hopes of the Fed easing anytime soon has also taken a toll on Treasuries, which in turn has made rate-sensitive areas like Utilities and Financials less attractive. The latter and more heavily-weighted Financials sector is under additional pressure amid more evidence of subprime lending woes. Albeit not an S&P 500 constituent, NovaStar Financial (NFI 10.96 -6.59) losing a third of its value after posting an unexpected loss and putting its REIT status in jeopardy is acting as an added source of nervousness for other mortgage lenders.
Technology, though, has been the focal point today since all eyes last night were on Hewlett-Packard's (HPQ 41.35 -1.78) Q1 report. However, the Dow component's Q2 outlook barely exceeding analysts' expectations has given shareholders an excuse to lock in recent gains. Fellow Dow component Intel (INTC 20.78 -0.40) is also under pressure following downbeat commentary out of Prudential while analyst downgrades on Motorola (MOT 18.90 -0.27) and Qualcomm (QCOM 41.95 -0.74) are also removing notable leadership from the S&P 500's second most influential sector.
I think we see a sell off after the Fed comments this afternoon - The rate cut is off the table
#6
Posted 21 February 2007 - 01:07 PM
#7
Posted 21 February 2007 - 01:23 PM
#8
Posted 22 February 2007 - 10:37 AM
Edited by kisacik, 22 February 2007 - 10:37 AM.