Better Days Ahead....Much Better!
The stock market is drifting around aimlessly. Breadth is even on the NYSE, and Nasdaq is 17:12 (loosers out pacing winners). Volume is decent for a Friday before Labor Day. We are watching the NDX which has support around 1570, resistance is around 1585. Normally, on the day before Labor Day this type of action is not unusual. With the uncertanty of the economic after effects from Katrina, this dull market action is considered impressive.
Perhaps the market liked the Goldilocks nature of the employment report. Maybe traders are relieved that the IEA will be easing supply constraints in the oil market. (This news came at the same time that certain Gulf energy facilities are coming back on line). In its perverse way the market also has been conditioned to find bids when there is "blood on the streets". Remember the rally after 911? The market sold off for only a few days then rallied hard for a few months. Eventually the fundamentals kicked the extended market right in the gut.
Traders around the world have learned to respect the resiliency of the U.S. economy, and this time will not be any different . The underlying bid is evident and sets the odds favorably for a near term small rally . However, the sustainable rally opportunity is still a few weeks away. One good Pop and Drop would create the ideal set up that we have been preaching about recently.
If You Held a Taser to Our Head: The Katrina market dip is currently delayed while traders try to capitalize on the "blood in the street" pattern buying that they are so conditioned for. The Nasdaq may rally to 2185-2190 before rolling over about 5-7%. Therefore, this little near term pop is only playable for the nimble. The better opportunity that we expect this fall will be for the Buy and Hold crowd.
This is our last post for the day. Our posts will be back to a normal schedual on Tuesday.
Have a wonderful Holiday . ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
Perhaps the market liked the Goldilocks nature of the employment report. Maybe traders are relieved that the IEA will be easing supply constraints in the oil market. (This news came at the same time that certain Gulf energy facilities are coming back on line). In its perverse way the market also has been conditioned to find bids when there is "blood on the streets". Remember the rally after 911? The market sold off for only a few days then rallied hard for a few months. Eventually the fundamentals kicked the extended market right in the gut.
Traders around the world have learned to respect the resiliency of the U.S. economy, and this time will not be any different . The underlying bid is evident and sets the odds favorably for a near term small rally . However, the sustainable rally opportunity is still a few weeks away. One good Pop and Drop would create the ideal set up that we have been preaching about recently.
If You Held a Taser to Our Head: The Katrina market dip is currently delayed while traders try to capitalize on the "blood in the street" pattern buying that they are so conditioned for. The Nasdaq may rally to 2185-2190 before rolling over about 5-7%. Therefore, this little near term pop is only playable for the nimble. The better opportunity that we expect this fall will be for the Buy and Hold crowd.
This is our last post for the day. Our posts will be back to a normal schedual on Tuesday.
Have a wonderful Holiday . ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
Click Here To E-mail Comments
posted by Kleiner Capital Management, LLC. | 3:31 PM
<< Home