Post by Savant on Jul 7, 2004 23:31:51 GMT -5
Economic and Market Commentary
Post Rate Hike Fallout Gets Worse...
Published @ 00:45 EDT July 08 2004
We opined that Wednesday could be a pivotal day or perhaps Thursday might provide some reprieve and further suggested Wednesday could bring an early to mid-morning rally, punctuated by downward probes to find a firmer footing from which to mount a counter-trend rally. That is almost exactly what happened and after probing several times the market did manage a decent rally of sorts into the early afternoon, but then opposite to the day before, the whole thing began to fall apart and the indices started going badly negative and closed that way, threatening the earlier lows of the morning. After hours, Yahoo’s results came in line with expectations and that un-exciting fact caused after hours trading to plummet. So that makes any chance of mounting a strong rebound Thursday even more remote, barring some kind of weekly job data miracle number or other surprise event.
Stock market indices are deteriorating technically and that is not a good sign, the monthly lows of June have already been threatened and taken out and we are still in the first week of July, a very bad sign and there are some ominous looking gaps at higher levels and potentially additional gaps could be in play Thursday, that could potentially accelerate downside activity.
Some issues that look like a pretty safe short-sales, could be GR – Goodrich Corporation. CMRC looks weak as do HIBB, HURC, ROXI, CO and Sun Micro Systems – SUNW.
For information on other markets: Check out Commodities, Futures and Currencies
Have a great Thursday
Savant
Post Rate Hike Fallout Gets Worse...
Published @ 00:45 EDT July 08 2004
We opined that Wednesday could be a pivotal day or perhaps Thursday might provide some reprieve and further suggested Wednesday could bring an early to mid-morning rally, punctuated by downward probes to find a firmer footing from which to mount a counter-trend rally. That is almost exactly what happened and after probing several times the market did manage a decent rally of sorts into the early afternoon, but then opposite to the day before, the whole thing began to fall apart and the indices started going badly negative and closed that way, threatening the earlier lows of the morning. After hours, Yahoo’s results came in line with expectations and that un-exciting fact caused after hours trading to plummet. So that makes any chance of mounting a strong rebound Thursday even more remote, barring some kind of weekly job data miracle number or other surprise event.
Stock market indices are deteriorating technically and that is not a good sign, the monthly lows of June have already been threatened and taken out and we are still in the first week of July, a very bad sign and there are some ominous looking gaps at higher levels and potentially additional gaps could be in play Thursday, that could potentially accelerate downside activity.
Some issues that look like a pretty safe short-sales, could be GR – Goodrich Corporation. CMRC looks weak as do HIBB, HURC, ROXI, CO and Sun Micro Systems – SUNW.
For information on other markets: Check out Commodities, Futures and Currencies
Have a great Thursday
Savant
