The Inquisitive Mind

Over the last month the equity markets have drifted downwards after the SPX failed to move beyond the 950 level after multiple attempts. During this period the 200 Day Moving Average has provided the market with a well defined level to trade off, with equities bouncing off this level multiple times. The 870 level on [...]

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The US equity markets bounced back after the large losses registered on Wednesday. The equity markets shook off a slightly worse than expected job-loss data with across the board gains. Stocks sold off at the open, and tested yesterday’s low on the SPX. However like yesterday the ES futures bounced off the 880 level, forming [...]

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As I had anticipated the equity markets gapped down at the open today. There is strong divergence all along, with large cap tech getting a bid while energy and financials being sold off. This is the reverse of the sector rotation we were seeing last week.
Market Internals Diverge
The market breadth is negative on the NYSE [...]

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Last weekend I had written that the stress test results would not intimidate the market, and it is likely to be a buy the news event. The markets did not disappoint. They bought every leak about the results, and then bought some more after the results were officially released. Though I am a bit skeptical [...]

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The treacherous bipolar nature of the equity market was visible today. This week’s Job Loss numbers and monthly retail sale numbers from Wal-Mart and Target came better than expected. The ES futures opened near their overnight high of 929.50. However the gap-up opening level could not be sustained. Equities were sold right from the get-go, [...]

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The Wall Street Journal has a nice article outlining the financial situation at the major banks, and an impressive graphic which goes with it. But for Bank of America which does need to raise a substantial amount of capital, most big banks have come out relatively unscathed.
Media Campaign Gets a Big Thumbs Up
The administration has [...]

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Last night I had written that the ES futures were down significantly after the news that Bank Of America needed $35B in new capital as a result of the stress tests. Perhaps this would be the signal for the long awaited pull-back. I was hoping (and still hope) for a test of the 875 [...]

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The equity markets had an inside day today. Most indices traded well in the upper end of yesterday’s range. The SPX formed a double bottom at the 897 level and closed strong.
However as I write this post the S&P futures are down 11 points. It seems this was a result of a news item that [...]

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In my post over the weekend I had written that the Stress Tests for Banks are unlikely to have a significant negative effect on the equity markets. I was hoping for some sideways action, which would provide an opportunity to initiate new long position. What I did not expect was how the market would [...]

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Friday was a see-saw day in the US equity markets. After a gap-up open, most indices under- cut their lows from Thursday’s in the morning session, before bouncing up. They spent most of the day in range-bound trading till a last minute push lifted the SPX above the critical 875 level. Given the gyrations during [...]

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