It is somewhat difficult to divine the market direction immediately after a FOMC rate decision. Often the move is not the direction of the next session. Saw that the past two decisions. With the indices modestly higher, that is not that promising a prognosis.
There basically was no change in market position after the announcement until the past 10 minutes when sellers started taking control and driving stocks below the 6 hour trading range. It looks as if the modest gains sported all session will be hard-pressed to hold to the close.
Yellen was not that worried about the jobs report, stating to not put too much emphasis on one report. At the same time she cited worry over Brexit as a factor staying her hand on another hike. Before this it was China, and other times the world in general. Always a reason not to hike and thus slide inexorably toward negative rates in the US.
With this late slide stocks are obviously off their highs. Individual leadership stocks look pretty solid. We picked up some ROVI earlier and CYBR is holding up pretty well and we are looking at picking up more there. On existing positions many are holding support again.
The issue is whether holding support is enough. Stocks in leadership groups were set to bounce. Some are, e.g. CYBR, XLRN, ROVI, etc. Others are holding but not bouncing. The index charts were up, now down, and they looked heavy even when they were up.
Again, looking at some CYBR, likely close RMTI, JAZZ and will see how others look into the close.
SP500 -0.10%
NASDAQ -0.14%
DJ30 -0.13%
SP400 0.20%
RUTX 0.59%
SOX -0.10%
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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