Volume increased again as earnings, both good and bad were
reported. Markets gapped higher and then
immediately the selling started.
Wednesday's late day selling was attributed to much traveled analyst Dick
Bove's weird comments regarding
WFC.
Yesterday those sentiments were quickly reversed as markets skied. Today more earnings hit the tape with most
attention focused on Amazon's stellar results (shares rose 26%!) and Microsoft's
better than expected results (shares rose over 5%). But, then there was the little matter of Burlington
Northern's below expected forecast.
Their results are important since hauling "stuff" about reflects on economic
conditions. Also, and rather oddly, was
poor performance in the energy sector as oil prices fell (they're still above
$80!) and the dollar rallied some which should be expected on a Friday with
both markets stretched.
The bottom line is just when you were about to order that
new Ferrari you get slammed by the computer trading programs. Those HAL 9000s can work both ways in case you
had forgotten.
As stated, volume was heavier than yesterday while breadth
was as negative as you would expect.
\
No question about it, this was a weird week fraught with
volatility not even captured in a still relatively tame VIX. But, it's October and "trick or treat" time
is just around the corner.
We're through the bulk of earnings by now and for the most
part many are selling the news believing it can't get any better. My own sense is lots of money managers have a
vested interest in protecting a positive year as we head toward the finish of (can
you believe it!) 2009. That said, we can
still have a crappy November with the major "stick save" still available in
December. That's about as far down the
line of forecasting the Fryguy can venture.
Next week we'll get the usual assortment of economic data
(Home Prices, Consumer Confidence, Durable Goods, Jobless Claims, GDP and
concluding with Personal Income, Chicago PMI and more Consumer Confidence data)
and what's left of earnings. It's also
the last week of the month and tape painters will be about making sure to prop
prices to put a positive end to the month.
I hope you all have an enjoyable weekend!
