Wednesday, April 07, 2010

Mid-Week MLR

We're seeing a modest shift in leadership momentum here with the financials, as represented by BAC, and EEM are picking up the pace. Still not much divergence among the top 5 as the markets continue to inch upward. The new PP+ is bearish on the Qs and this will be the indicator's first trial under fire so I'm interested to see how the next few days resolve.
We continue to witness some flattening in most of the system equity curves, the product of both conflicted signals and a VIX bumping along at 16. The VXX hit another all time low close today at 19.59, with no let up in sight and in my opinion swing traders should ignore this ETN, leaving it to die a slow death. Daytraders, on the other hand, should take note of the daily ATR of .81 (4%)as an attractive trading vehicle . . keeping close attention to the ongoing downslope bias ( sell the rallies).
FXC is still leading the currency pack although a closer look at the Rotator results shows BZF continuing its run and actually leading on the 5 day performance metric. The dollar is picking up momentum once again and the yen, probably just to spite my Monday post, staged a little burst of enthusiasm.
Next week kicks off earnings season with AA leading off. Maybe coincidence, but Citi yesterday maintained its "BUY" rating on AA with a target of $17 (currently at 15). Whether this is gaming on Citi's part should become apparent next Tuesday and will provide an important benchmark for things to come.

No comments: