Typical quad witching Thursday. The markets shuffled around a lot, feeding your broker, but basically nothing has changed except that QQQQ hit its 200 dma and backed off. SMH (semi holders) still can't get out of bed and above June highs. One bullish development is the COMP holding on to the 200 dma. MSFT provided support with the Zune annoucement, but you have to wonder about that one (are you really going to give that to your kid instead of an ipod? Good luck). ADBE after hours is cranking and that could provide a boost tomorrow if the economic numbers cooperate.
The real answers as to whether we are headed higher or not will be answered before the open when the CPI numbers come out. An increase of +.2% in the core reading is priced in, a move of +3% is not and will bring about a correction. Even gold is pricing in the goldilocks outcome by selling off some more. Next support in the metal is at 577. A weak dollar could not provide support and you have to start thinking that ECB officials are responsible for this indiscriminate bloodbath which is getting less grounded in reality as the days go by. That inventory clearance ends on the 26th, their deadline.
All in all, bulls hold on to their rally, which is good news. The option pinning process is in full swing and it is hard to make a clear call at this point, but bulls have the edge and could blow past resistance next week if all goes according to plan. That is a big if.
The real answers as to whether we are headed higher or not will be answered before the open when the CPI numbers come out. An increase of +.2% in the core reading is priced in, a move of +3% is not and will bring about a correction. Even gold is pricing in the goldilocks outcome by selling off some more. Next support in the metal is at 577. A weak dollar could not provide support and you have to start thinking that ECB officials are responsible for this indiscriminate bloodbath which is getting less grounded in reality as the days go by. That inventory clearance ends on the 26th, their deadline.
All in all, bulls hold on to their rally, which is good news. The option pinning process is in full swing and it is hard to make a clear call at this point, but bulls have the edge and could blow past resistance next week if all goes according to plan. That is a big if.
This entry was posted
on Thursday, September 14, 2006 at 3:17 PM.
