Tim V chimes in...
The following snippet is from Tim Villano's comments this morning:
"Yesterday's stock market sell-off was an intermarket event with rate-sensitive groups pressured by declining Treasury prices. On the Monday, February 28 conference call, clients were advised that the Ten Year Notes Futures (TY108-295) had slipped into a downside pivot ... On that same conference call we advised that the Philly Bank Index (BKX -1.54 99.69) had been weakened technically and likely would not confirm new general market highs for the Dow and SPX. We also mentioned, and reiterated on yesterday's conference call, that several BKX components had slipped into uniformly negative patterns. I also would emphasize for the Bank Index that a decline below (BKX 99) will reinforce the notion of a weekly topping process, which could further support an interim or longer-term topping process for the stock market, especially with several "big picture" indicators, including recent CFTC data, in a negative posture... We still expect some recovery into next week's expiration, but clients should be clear that important data points and intermarket activity are pointing to a multi-week to multi-month high developing in the month of March. (Italics mine -- dmg) We have already seen that important indices like the Bank Index (BKX), the Biotech Index (BTK) and the Retail Index (RLX) have been reluctant to move to new highs with the general market."
Beauty is in the eye of the beholder, and so too is risk...
"Yesterday's stock market sell-off was an intermarket event with rate-sensitive groups pressured by declining Treasury prices. On the Monday, February 28 conference call, clients were advised that the Ten Year Notes Futures (TY108-295) had slipped into a downside pivot ... On that same conference call we advised that the Philly Bank Index (BKX -1.54 99.69) had been weakened technically and likely would not confirm new general market highs for the Dow and SPX. We also mentioned, and reiterated on yesterday's conference call, that several BKX components had slipped into uniformly negative patterns. I also would emphasize for the Bank Index that a decline below (BKX 99) will reinforce the notion of a weekly topping process, which could further support an interim or longer-term topping process for the stock market, especially with several "big picture" indicators, including recent CFTC data, in a negative posture... We still expect some recovery into next week's expiration, but clients should be clear that important data points and intermarket activity are pointing to a multi-week to multi-month high developing in the month of March. (Italics mine -- dmg) We have already seen that important indices like the Bank Index (BKX), the Biotech Index (BTK) and the Retail Index (RLX) have been reluctant to move to new highs with the general market."
Beauty is in the eye of the beholder, and so too is risk...
posted by David M Gordon | 6:23 AM
<< Home