Tuesday, February 15, 2011

The Song Remains The Same

The market is lower again in early trading, but it remains to be seen if the bears can gain any traction, or if the market will once again rally into the close. The financials are bucking the early weakness and trading in positive territory, so that is at least one sign that the selling isn't that pervasive.

Yesterday's winners, namely energy and materials, are down the most this morning. Advance retail sales for January came in at +0.3%, which was less than expected.

Asian markets were mixed overnight. China's CPI showed a 4.9% increase, up from last month's 4.6% rise. European markets are also mixed after eurozone GDP for Q4 grew by 0.3%.

The dollar is lower today, and most commodities are mixed. Oil prices are lower again to $85, while gold prices are rallying back to $1372.

The 10-year yield is lower to 3.60%, and the VIX is bouncing +3.6% to 16.53.

Trading comment: CRM continues to build its base as the cloud stocks mend themselves. And PCLN continues to add to its gains. Group rotation continues. Today energy and materials are seeing profit taking, while financials are rallying. That has been the hallmark of this multi-month rally. Corrections have come in certain sectors, in the form of group rotation, as opposed to the whole market being sold off at one time.

long CRM, PCLN


At 12:39 PM, Blogger S said...

Mr. Kahn,

PCLN chart looks bullish. However, the earning report is coming up next week. Curious as to what your take is.. to hold or sell before the earning.

At 9:02 AM, Blogger J. Kahn said...

PCLN has already pulled back quite a bit, so at this point I am going to hold thru earnings and hope that a strong report results in a rebound for the stock.

At 9:52 AM, Blogger S said...

Thanks. I am also glad to hold thru the earning.


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