Friday, July 23, 2010

Noon update

And we have lift off! Well it's like someone put a rocket under the market this morning as the internals are very strong. A/D lines well over 2000 and 1800 on the NYSE and Nasdaq and breadth is 90% up volume versus 10% down on both exchanges. Volume is extremely heavy too for both the SPY and ES. Both are running well above the 30 day median average. Ticks trended straight up to +45,000 at 11.30am but has since levelled off. Also we did not get a negative tick reading in the first half hour which usually points to a trending type day. We have the dollar down and bonds down (although not nearly as much as what equities are up). Everything else is green. Transports, homebuilders, banking and gold are the strongest sectors today. All this on a day when unemployment and housing numbers came in worst than expected. I guess the market is really loving all that better than expected manufacturing data coming out of Europe earlier. Well whatever the reason, it is what it is.....

As for my trades, the AAPL trade is going well and GS is going so so. The SPY trade is underwater now so barring a pull back tomorrow it looks as though I could be taking a small loss especially given that the odds are we close higher from this point (ie trending day).

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