The Wrap 11/22/10

{+++}A loss of excitement for Ireland’s financial aid request left the stock market to drop more than 1%, but technical support provided a base for a rebound that helped the broader market slash its loss and the Nasdaq Composite stage a nice gain. After the close HPQ, ADI, BRCD, DY, FMCN, JACK, KONG, LZB, NUAN and PSUN were the most notable names that reported.

Tomorrow morning before the open, one economic report is scheduled to be released: GDP- second estimates (Consensus 2.4%) and GDP Deflator — Second estimate (Consensus 2.3%).

Tomorrow before the open look for the following companies to report: BWS, CPB, CBRL, DAKT, DSW, EV, FRED, HI, HRL, LTXC, MDT, NJR, PDCO, TNP, and ZLC.

Futures were up overnight as a result of the Ireland ‘resolution’, but the excitement faded quickly and the market completely rolled over when news that the FBI was raiding some hedge funds over the insider trading scandel. Goldman Sachs was linked again and the stock was pulverized, then stocks fell hard as rumors of redemtions at these funds grew roots.

It took a while and the market was volatile, but then it staged a very strong comeback rally. The financials (XLF) however, was one of the worst performing sectors as a result.

We had some nice winners in OPEN and  LULU and many of our other names did well even as the market was sliding.

The coal stocks came back strong and even poil rallied late. MEE announced that they would consider their options this week, which put a strong bid underneath the name. It looks like this one is getting sold or spun off or a combination of the two.

I added UYM and DO mid day to the P&L.

If Europe can behave itself economically in the days ahead we can rally, if not, the dollar will go higher and this market will have a long way down. Be nimble and when in doubt, just say out. No names tonight as we have a full list to monitor. The financials are in trouble in my opinion, and any bounce in the days ahead and we will take the FAZ train. XHB is due for a short as well…developing.

See you tomorrow.

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