Things were moving along just fine yesterday until the Fed's Lockhart came out hawkish. I though we were done with this nonsense , but I guess it will take a while to get off the government teet from a psychological perspective. The market started getting unhinged right around 12:30.
The market always looks for a reason though to take some off, so maybe it just used Lockhart's comments as an excuse. We were overbought (depending on what you look at), so you make the call. "Ours is not to reason why".
The biotechs started off fine yesterday, then put in quite a reversal. Top to bottom the $IBB moved about ten bucks. Names like $BIIB, $CELG and $AEGR shed big points. The standout biotech yesterday was $ALNY.
The financials ($XLF) broke a nice ascending flag, sold off, but still managed to hold 20 day moving average support.
Technology ($XLK) came off a bit, broke the 20 day moving average and now stands in that limbo stage between the 20 & 50 day moving average.
The $SPX lost its 21 day moving average by a couple of handles on a closing basis and the 50 day moving average comes in right around that round number of 1800. The possibility exists that it will want to go down and tag that level before we resume higher. We will see.
In other news, ARod is out for the year and pitchers and catchers show up in 26 days.
Japan recorded a record current account deficit.
$JPM reported 1.40 vs. 1.37
The Fed wants to regulate banks commodity trading.
I bought more $VEEV and $FUEL yesterday, also nibbled some oversold biotech.
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