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Tactical Investing in the 21st Century. The FMAM Team is composed of seasoned Wall Street professionals with combined active experience on the buy side and the sell side of the Street. Together, we have worked as RIA's, managed BD's, banks, and mutual funds as well as proprietary trading desks.... More
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  • The Momentrix View of the Markets for Tuesday July 26, 2011
    Today we saw the third consecutive drop for the Dow Jones Industrials, closing down by 91 points. The S&P 500 closed down .4% while the NASDAQ had a muted .1% fall.

    The S&P 500 and the NASDAQ seem to be consolidating above moving average support. Considering the dire predictions over the weekend this can be looked at as slightly constructive action.

    The strength in the Euro could be signaling the worst of the European debt crisis is past although it could just be a result of the turmoil in the U.S. dollar.

    The markets are likely to remain in a holding pattern as long as the Debt talks remain an uncertainty. The U.S. dollar index continues to languish near its 52 week low and any significant break of this area in a disorderly fashion could cause a negative equity market reaction.

    We remain cautious for the time being; we are keeping a list of opportunities should the market breakout from this consolidation.
    Jul 26 4:41 PM | Link | Comment!
  • The Momentrix View of the Markets for Monday July 25, 2011
    Today did little to resolve any of the issues hanging over the market. The S&P 500 and the NASDAQ finished the day down 0.5%. 

    There are multiples plans to resolve the debt ceiling dispute but until there are actual votes there is little to trade on. Although the weekend news painted a grim picture as far as how the market was going to react, the reaction by the market was not nearly as bad as many had feared.

    This may be a small victory for the bulls although the afternoon trade left a sour taste. We leave the day seeing little to be excited about in the market.
    After the close we will be watching for the earnings from Baidu (BIDU) and Netflix (NFLX).
    Jul 25 4:37 PM | Link | Comment!
  • Momentrix Week in Review July 22, 2011
    Debt, debt, debt and more debt. That’s the world and news cycle we live in. Even though we are in the midst of a strong earnings reporting season, it seems as though all the market is focused on is the multiple debt crises around the world. This is unfortunate due to the fact that the market fundamentals outside the macro world are actually very strong. Perhaps Washington and Europe will get their collective acts together and the markets can actually focus on these fundamentals. The markets do want to go up absent these headwinds.
    The market had a decent week especially in light of the headlines coming out. The EU was able to resolve their problems with Greece, at least temporarily. The European news bolstered S&P 500 by 2.1% on the week while the NASDAQ did a little better, up 2.4%. The S&P and the NASDAQ are just shy of recent high from early July. The technical picture has improved over the past month and the market is looking to continue to climb the wall of debt worry. Both Indices are only about 1% from breaking out to a new 52 week high. A breakout would be very impressive considering the headwinds the market faces. We see the resolution of the macro headlines as a key to a breakout for the market.
    As of right now it doesn’t seem this headline resolution is going to happen as shortly after the close Friday House Leader Boehner pulled out of the debt talks with the Democrats creating a new uncertainty for the markets. There is heavy speculation that the markets will have a severe negative reaction to this news as the markets were expecting a resolution to the Debt ceiling. There are rumors of a deal being put together by 4PM Sunday but this is a very unpredictable situation. There is potential for an adverse market reaction if the two sides don’t show some serious progress as the August 2 deadline is quickly approaching.
    The economic calendar (http://www.nasdaq.com/markets/us-economic-calendar.aspx) is fairly busy in the coming week. On Tuesday, the Case-Shiller Home price index, Consumer confidence and new home sales will be released. Wednesday is highlighted by the Durable Goods report, a volatile series, and Thursday the weekly jobless claims and pending home sales. Friday is very busy with the first look at GDP for the second quarter along with Chicago PMI and Consumer Sentiment. With the debt ceiling talks in focus, it will be interesting to see the reaction to the multiple Treasury auctions especially if there is some ratings action on the U.S. The week will also be loaded with earnings reports which will only add to the heavy news flow of the week.
    The bottom line is that we remain fairly defensive going into the week. We have been wrong about our caution and cannot remain hedged if the market keeps moving higher. It looks as though it could be a tough week for the bulls if the debt ceiling doesn’t get resolved. Even a resolution may not be good enough if the ratings agencies perceive too little is done to slow the growth of Federal debt. We will wait and see how the market reacts before adding to market exposure.
    Jul 25 11:25 AM | Link | Comment!
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