Wednesday Outlook: Surprise Selling

|
 |  Includes: IEF, IWM, IYR, IYT, KRE, MDY, QQQ, RSP, SPY, TLT, UDN, UUP, VTI, VXX, WDC, XHB, XLB, XLF, XLI, XLY, YHOO
by: David Fry

October 20, 2009



TAKING A BREAK

It was a pretty strange day. Logic would argue for a big rally following earnings from Apple (NASDAQ:AAPL), Texas Instruments (NASDAQ:TXN) and Caterpillar (NYSE:CAT); but no, instead investors focused on weaker than expected housing data and sold. It’s like I said at the end of last night’s commentary: “that’s why they play the game.”

As this is written, the “better than expected” earnings are rolling in from the likes of Yahoo (NASDAQ:YHOO) and SanDisk (SNDK). Both stocks are bid higher in after hours trading.

click to enlarge
Click to enlarge

And volume is repeating the previous pattern of being heavier (although today’s volume was hardly “heavy”) on selling than buying. Breadth was negative.

Click to enlarge










































































Go to page 2 - Commodities, Global Markets >>

Comment on this article >>