THE GOOD: Alcoa cites
strong demand…
NEW YORK (CNNMoney) --
Aluminum producer Alcoa became the first Dow component to report second quarter
results Monday, posting income that was in line with analyst expectations and
saying that demand for its products is strong.
http://money.cnn.com/2012/07/09/investing/alcoa-earnings/index.htm?iid=HP_LNNo economic turndown worries there.
THE BAD:
Breadth (the number of
stocks advancing vs the number declining) was down today, meaning that while
the S&P 500 index was up slightly, the other 4500 stocks declined. That’s not particularly a good sign. I’ll watch that since it could lead to a
quick turnaround. It also probably
represents a flight to quality and that should favor the big name companies.
THE UGLY: EUROPE
FORTUNE -- Europe is starting to look more and more like the U.S. as it
headed for the cliff in the fall of 2008. The continent's banking system is
fragile and overleveraged. Making a scary situation even scarier is the lack of
a central, credible authority to protect European bank depositors against
losses should their banks fail.
The NTSM theme:
MARKET
Monday, the S&P 500
was up 2pts to 1352. The VIX rose 5% to
17.98. The rise in VIX not a good sign.
NTSM
The NTSM analysis switched
to BUY Friday and is HOLD today, Monday.
If VIX and breadth continue in the wrong direction this may be a short lived buy call.
MY INVESTED POSITION
Based on the BUY signal
Friday, 6 July, I moved back into the market on 9 July and I now have a 50%
stock allocation as of the close.
