Weak Into The Close
The market has not been able to find its customary late-day lift. The COMP is down nearly 50 points, which is the equivalent of roughly 250 Dow points.
Breadth is very weak, and volume is rising. This will make for a pretty strong distribution day, pointing to more weakness. Measures of investor anxiety have started to pick up a little, but it is just a start.
Oil is back up over $73, and bond yields are up near year highs at 5.16%. It seems that the prospect for higher energy prices, higher interest rates, slower housing, and slower economic growth have unsettled the market today.
GOOG is taking a hit, and if flirting with support at it's 50-day. SBUX has broken strongly below its 50-day. And URBN looks like it may have found a short-term bottom coinciding with today's earnings report.
I will be suprised if the market doesn't see at least some additional weakness in the near-term, and have raised some cash accordingly.
long GOOG, URBN
posted by J. Kahn @ 12:45 PM
2 comments
2 Comments:
I'm surprised that SBUX and other daily splurges haven't been hit more by higher fuel prices. Maybe folks don't consider that discretionary spending...
No, they'd probably rather pack lunch than skip their latte. I think consumers will cut back on higher priced items first, like a new pair of shoes or maybe a fancy dinner.
But for now, I think more people are just complaining about gas prices than actually changing their behavior.
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