The Insightful Trader

Taking a Breather

by on Mar.24, 2009, under Market Commentary

The market took a small breather today after it’s incredible day yesterday, which was to be expected. Surprisingly, most the day the market acted exceptionally well until some late selling about 2:45 hit us. Overall the market was down 2% on the S&P and 1.5% on the Dow, which dropped 115 points.

Tech stocks were slightly weaker than most today with MSFT, KLAC and BRCM all dropping 2.5% to 4%. AG stocks were mixed with relatively small moves, as were the solar plays. Energy stocks, including the services, were mostly down on the day by a couple of percent. Precious metals started the day off weak and stayed that way all day with gold down about $25 on the day thought the gold stocks actually held up pretty well. The financials, the hot group the past week or so held up and in fact were doing well, until the final 2 hours when they came under some serious selling pressure. JPM seemed to be one of the the biggest losers dropping 2.46 while the BKX dropped 7.5%.

The dollar rallied some  starting it’s climb early this morning and was strong throughout the day, pushing the Euro back down to the 134.50 range. Big gainers today included SKF for obvious reasons and BIDU continued it’s upward move on some upgrades, though it too succumbed to some profit taking late. CME was the big loser today, dropping 27 points to basically give up everything it gained yesterday.

We’re in a pullback here. From the way the market acted most the day, not sure its going to be a big one. It seemed that every time we started to retreat today, more buyers came in. There were not a lot of good short opportunities today until the very end. Market just feels like it wants to go up, but as you can see from the chart below, we could easily pull back to the trendline, which isn’t that far away. I think most professionals seem to not be so intent on shorting here, as just waiting to buy until we get a pullback.

spx-60min-23mar09

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