Bears Will Need Follow Through, 1080 Support

Posted by UpsideTrader
on October 22nd, 2009

S&P

” If your fast and if your lucky you will never see that hangin’ tree–Eagles, Doolin- Dalton

Everybody was just minding their own business, having a grand old time as they waited for the market to retake and eclipse that 1100 level in the last hour of trading. It was eerily reminiscent of the the old days when the “deleveraging bell” rang at 3pm and stocks were just sold with reckless abandon. It happened suddenly, and unless you were fast or lucky you lost some loot.

The Index still held 1080 on the close, and for now the bulls are shaken but still in charge. EBAY guided lower after the close yesterday and the stock was hit in after market trading, Amgen was also weaker after the close.

China’s GDP expanded 8.9% in the third quarter. Our pay Czar is cutting pay and bonuses at TARP banks; and Dick Bove went to a “sell” on Wells Fargo yesterday in an effort to steal some of Meredith Whitney’s thunder. I happen to agree with him on this call.

Potash had lousy earnings this morning and guided lower. Most of the big name financial earnings are out of the way and I would be very surprised if they don’t lean on the group in the coming days and weeks.

Have a great day.

Thursday, October 22, 2009

Economic

8:30am Initial Jobless Claims (last 514K), Continuing Claims (last 5.992M)

10:00am Sept Leading Indicators (last 0.6%), Aug House Price Index m/m (last 0.3%)

10:30am Natural Gas Inventories

11:00am Treasury note announcement

Events

10:30am Fed’s Rosengren speaks in Massachusetts. 12:00pm Fed’s Lockhart speaks in Miami. 1:30pm Fed’s Dudley moderates panel at Boston Fed Conference. 4:00pm Fed’s Evans speaks in Michigan. 8:00am FDA Hematology and Pathology Devices Committee Meeting. Trades Ex-dividend: WPO $2.15, CL $0.44.

Earnings

Before the Open: MMM, AEIS, AKNS, ALK, ALXN, T, AUO, BDK, BGG, BMY, CCMP, CSH, CELG, CHKP, CXG, CNMD, CNX, CBE, DHR, DAL, DLX, DO, DOW, EXP, EMC, ESV, ETR, FITB, FCF, GMT, GR, HSY, HBAN, RX, IIIN, IVC, ESI, JNS, JBLU, KNSY, KMB, KVHI, LH, LM, ERIC, MCD, MI, MJN, MRK, MKSI, NCR, NYT, NIHD, NWPX, NVS, NUE, OXY, ODFL, ORI, PM, PNC, POT, PDS, PLD, PFS, RTN, RS, RAI, R, SGP, SIAL, SNA, SON, SPAR, HOT, STFC, STI, SY, TDY, TIN, TRA, TMO, TRV, UNP, UPS, LCC, WBS, WCC, XRX, ZMH. During Trading Hours: ASBC. After the Close: ALGN, AMZN, AXP, AMSG, AVID, BXS, BRCM, BUCY, BLDR, BNI, CA, COF, CHRT, CAKE, CMG, CB, CYN, CPWR, CYBS, DECK, DDR, EMN, ELX, FII, GDI, HWAY, HITT, HOKU, INFA, IBKR, JNPR, LSCC, LEG, WFR, MCRL, MTX, MPWR, NFLX, NTGR, NTCT, PMCS, PGI, RNOW, RVBD, RCKY, SIMG, SNWL, STMP, SPWRA, SYNA, SNV, WOOF, WRE, WDC.

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