Markets continue to charge higher from today's initial gains. The Dow, S&P, and Nasdaq are all up over 7% on the day. All sectors have remained positive, but the financials I spoke of in my "First Hour" post have remained down on the day, leading me to believe that this rally is still a bit inflated. I am expecting some profit taking near the 4pm close, with gains on the Dow and S&P retracing back to around 5.5%. One key piece of data to note is the 14.5% drop in the VIX, which could point to a bottom in the near future if it continues its downward trend. Other fundamental data to to keep in mind includes crude trading up 4.3% and USD trading down 1.5%. If these two continue their respecitve trends, we can discern that investors may be starting to price the fear and capitulation out of the markets. Keep an eye on these through the rest of the week, especially if the markets continue trending upward.
Stocks to watch as we head into the close: MS (up 70% on news of capital injection), AAPL (up over 8% on analyst upgrade), GM (up 31%, but still under heavy scrutiny), JPM (down 3.3%, a dramatic move against today's positive trend).
Final analysis to follow at the close, so please check back.
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
Ouch, "I am expecting some profit taking near the 4pm close, with gains on the Dow and S&P retracing back to around 5.5%."
DOW, NASDAQ & S&P all +10%
Watch AAPL tomorrow! http://www.engadget.com/2008/10/14/live-from-apples-spotlight-turns-to-notebooks-event/
Post a Comment