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Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her... More
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  • Intraday Market Notes -- July 23 0 comments
    Jul 23, 2012 2:55 PM | about stocks: TAN, KWT, UUP, FXF, EWP, EWI, CAF

    2:40 pm ET: Sellers were in control of the opening bell this morning but buyers quickly stepped in. As of this writing, the major averages have nearly cut their losses in half and buying pressure is continuing as shown by the rise in positive VWAPs and the drop in the VIX. The Trin is the only one of the bunch that's moving to the contrary but since it started the day from essentially zero and is still well within bull boundaries, it's given a break. But it's exactly this point that has me bothered; on days such as today where the market opens sharply down, the Trin is typically extremely high. As the day progresses and buyers step in, the Trin will lower as the indices rise. Today's action is exactly the opposite.

    So, what might this mean? A divergence is generally regarded by technicians as a sign of reversal. That doesn't mean that the movement is imminent but it wouldn't be unreasonable to imagine tomorrow's open to mirror today's. You see, the sellers are still with us as evidenced by the magnitude of the negative VWAPs. As I've been noting for the past couple of weeks, there is a cloud of indecision surrounding this market of which both bulls and bears should be mindful. It would be wise for long term investors to continue to hedge and for bears to keep a watchful eye on their short positions. Recent market action has shown us that anything can happen and is likely to continue to do so for the near future at the very least.

    Sector News: Solar stocks keep getting hammered. Two solar etfs TAN and KWT are dipping to fresh lows and both are down 95% since their 2008 debuts. No amount of sunscreen would have shielded investors from that type of scorching loss!

    In other news, the risk-off trade is the theme of the day. The long US dollar etf (NYSEARCA:UUP) is posting a fresh high as are treasury bond funds (TLT, TLH, TLO, IEF, ITE, IEI), government-backed mortgages (NYSEARCA:MBB), and the total bond fund (NYSEARCA:BND). Not surprisingly, the euro (NYSEARCA:FXE) and Swiss franc (NYSEARCA:FXF) (which is unfortunately tied to the euro) are making new lows as are the country funds of Spain (NYSEARCA:EWP) and Italy (NYSEARCA:EWI). But they're not the only ones suffering: the Israel etf (NYSEARCA:EIS) and a China etf (NYSE:CAF) are also joining them.

    Stocks: TAN, KWT, UUP, FXF, EWP, EWI, CAF
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