Sweaty cash
Extremely impressive action in the stock market today. The breadth was strong better than 2:1 on both the NASDAQ and NYSE. In addition to that the volume was huge at over 2.2 billion shares on the Nazz and almost as much on the NYSE. All the major averages are now above their 50 day simple moving average.
After the bell Qualcomm posted a decent report and raised guidance for next quarter. In the financial sector Prudential blew the lights out after hours with their report. Regular readers are reminded that your friendly neighborhood Kcap team has been recommending the large cap brokerages as well as technology stocks. We expect further out-performance from the financial group in 2006 directly resulting from increased deal flow in the technology sector (ahh... synergies). We also believe that the increase in market volatility will bode well for the brokerages trading revenues.
Despite today’s stellar market performance, many skeptics still loom. Therefore the bulls can look forward to a steady diet of sidelined cash as it reluctantly drips into the market. When we hit the middle-to the end of November, the pain of the under performing money managers will be "UN-BEARABLE". That’s when you will see a chase scene right out of Starsky and Hutch.
If you held a Taser to Our Head:
The Bears may still try to pull the market down as long as the NASDAQ remains under 2147, however those dips will not last long. Once the NASDAQ recaptures the 2147 level on a closing basis and puts in a little basing action the situation will be ideal. Should that materialize in the next week, the bulls will have COMPLTE CONTROL.
Hope you did well.
We will not be able to post tomorrow but will be back on Friday.
See you then. ___________________________________________________
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.
___________________________
After the bell Qualcomm posted a decent report and raised guidance for next quarter. In the financial sector Prudential blew the lights out after hours with their report. Regular readers are reminded that your friendly neighborhood Kcap team has been recommending the large cap brokerages as well as technology stocks. We expect further out-performance from the financial group in 2006 directly resulting from increased deal flow in the technology sector (ahh... synergies). We also believe that the increase in market volatility will bode well for the brokerages trading revenues.
Despite today’s stellar market performance, many skeptics still loom. Therefore the bulls can look forward to a steady diet of sidelined cash as it reluctantly drips into the market. When we hit the middle-to the end of November, the pain of the under performing money managers will be "UN-BEARABLE". That’s when you will see a chase scene right out of Starsky and Hutch.
If you held a Taser to Our Head:
The Bears may still try to pull the market down as long as the NASDAQ remains under 2147, however those dips will not last long. Once the NASDAQ recaptures the 2147 level on a closing basis and puts in a little basing action the situation will be ideal. Should that materialize in the next week, the bulls will have COMPLTE CONTROL.
Hope you did well.
We will not be able to post tomorrow but will be back on Friday.
See you then. ___________________________________________________
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.
___________________________
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posted by Kleiner Capital Management, LLC. | 5:56 PM
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