Too Impressive
Apparently everybody was caught leaning the wrong way going into the holiday weekend. The Bulls truly slapped the Bears "upside the head". Maybe, traders were overly cautious on Friday and now need to reposition to a more neutral stance. Perhaps, the shorts were squeezed which helped suck in more overanxious Bulls. For whatever reason, the market put in an almost picture perfect performance today.
Semiconductors and Small Caps joined the party and actually outperformed the Dow and the NASDAQ. Volume was light but better than the action last week. Breadth was sweet on the NYSE at 3 to 1 advancers over decliners while only 2 to 1 on the NASDAQ. This is the only technical fly in the ointment that we were able to detect.
Fundamentally we were surprised to see the poor performance in Gold. Should the Fed truly be considering the all mighty pause, the Gold sector would have showed strength…hmmm? However, with the exception of Gold, most sectors participated in this rally. Our sense is that the market is a beneficiary of seasonal liquidity flows and poor Hedge Fund positioning. September is notoriously a difficult month. The definition of difficult equals pain for the Bulls. There is no pain until they are sucked in first.
If You Held A Taser To Our Head: We are maintaining our neutral position slightly over 50% invested for the time being. The fact that so many traders were caught off guard by this move portends more upside bias in the near-term. Even many professional experts miscalculated this Bullish action. We would expect most of them as well as the overanxious traders to be victimized by the allure of the Bull before the Bears dance.
See you in the morning. ___________________________________________________
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.
___________________________
Semiconductors and Small Caps joined the party and actually outperformed the Dow and the NASDAQ. Volume was light but better than the action last week. Breadth was sweet on the NYSE at 3 to 1 advancers over decliners while only 2 to 1 on the NASDAQ. This is the only technical fly in the ointment that we were able to detect.
Fundamentally we were surprised to see the poor performance in Gold. Should the Fed truly be considering the all mighty pause, the Gold sector would have showed strength…hmmm? However, with the exception of Gold, most sectors participated in this rally. Our sense is that the market is a beneficiary of seasonal liquidity flows and poor Hedge Fund positioning. September is notoriously a difficult month. The definition of difficult equals pain for the Bulls. There is no pain until they are sucked in first.
If You Held A Taser To Our Head: We are maintaining our neutral position slightly over 50% invested for the time being. The fact that so many traders were caught off guard by this move portends more upside bias in the near-term. Even many professional experts miscalculated this Bullish action. We would expect most of them as well as the overanxious traders to be victimized by the allure of the Bull before the Bears dance.
See you in the morning. ___________________________________________________
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. | 5:05 PM
<< Home