Online Stock Trading | Bernanke fails to inspire but, a late day surge wipes away hefty losses

Bernanke fails to inspire but, a late day surge wipes away hefty losses


Filed Under Market Commentary |

A relatively inflated, yes pun intended CPI along with earnings from YHOO and INTC sent stocks lower at the session’s open.  The downward trend continued as Bernanke did not reveal too much but did hint that interest rate policy would remain unchanged in within the near future (DOH, thanks Homer).  Without talk of a rate cut traders continued to drive stock prices lower.  Disappointing earnings releases along with an elevated CPI left most traders “worried” about future stock prices.

As the last hour of trading began, the market looked like it wanted to close to the downside.  Bears had definitely packed it in started to scribe a notch in the bed post.  Bulls had something else in mind, by the end of the day 1% losses narrowed to .5%.  End of day action like this can only be seen as bullish. 

Tomorrow’s trade will have its eyes focused on the release of the FOMC meeting minutes.  Again, this will refocus attention away from earnings to the inflation picture.  Bernanke foreshadowed the report today by hinting that FOMC policy will remain unchanged and that the second half economic growth is seen to be lower than expected.  The minutes should come to no surprise but as always traders will feel the need to “do” something.  Tread carefully tomorrow and do not feel the need to trade just to trade.

An update on two stocks: 

ARGN

ARGN

and here is RNIN:

RNIN

I am still in the camp that we are likely to see higher prices on the index.  Given a very high Total Put/Call ration on the CBOE today 1.12 (high of 1.41) and late day action just simply do not see a correction in the near future.  Price action has certainly not tipped its hand to the downside.  We remain in an uptrend for the longer term.

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