Thursday, March 16, 2006

Negative Reversal

The markets closed mixed today, with the SPX hanging on to a small gain and the COMP reversing all of its gains and finishing down. Volume rose today, making for a distribution day on the Nazz. The action there got pretty ugly, with the SOX down -3.2% today.

I sensed the market was going to have a rough time hanging onto its gains as the put/call ratio was extremely low all day. And oil was spiking up over $1, closing near $63.50. Of course, some of this could also be related to expiration tomorrow.

The one big positive was the plunge in bond yields, with the 10-year falling 8 basis points to 4.65%. This helped housing stocks put in a solid day. It should also help bolster sentiment towards equities. I'm still leaning long for the time being.


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