Posted by 26 June 2007

June 26, 2007 Stock Market Recap

Today’s trading was almost a replay of yesterday’s. For the second day in a row a good sized rally fizzled in the afternoon. In fact, rallies fizzled twice today — the opening gap got faded, then we got a strong bounce which got faded. Here’s a shot of the QQQQ’s intraday action over the last two sessions:

Despite the ugly closes the last two sessions the indices remain above their June lows. It sure feels like the market isn’t going to move far from this area until after the Fed decision on Thursday. It feels like we’re setup for a nice upside pop and the Fed statement may be the trigger.

Charts of the S&P 500, Nasdaq and Russell 2000 are below:

Trend Table

No changes.

Trend Nasdaq S&P 500 Russell 2000
Primary Up Up Up
Intermediate Up Lat Lat
Short-term Down Down Down

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

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Comments

  1. Posted by Keith Shepard on June 26, 2007 at 5:57 pm

    Some serious ugliness on IOC today. Not sure why it happened, but wow…I happen to be in it, but my stop was tight. A classic trade where honoring your stops, as hard as it may be at times, pays off.

  2. Posted by Michael on June 26, 2007 at 6:31 pm

    wow, that was a hell of a drop. Here’s what Briefing.com has on it:

    26-Jun-07 15:20 ET In Play InterOil follow-up: IOC continues to sell off aggressively; hearing some negative chatter is out there, but can’t confirm (36.75 -7.19)

    26-Jun-07 15:57 ET In Play InterOil: Color on stock action (30.50 -13.44) -Update : We note that IOC has sold off over 10.00 in the past hour. We spoke with the company, which suggested the weakness was an “overreaction” in response to the street’s expectations for a drilling update that has not yet been released. The co said no news is not necessarily bad news. Co has marketing meetings tomorrow in Boston.

  3. Posted by Bill aka NO DooDahs! on June 26, 2007 at 6:38 pm

    “This time is different.” The upside pop anticipated by a stochastic buy signal rising from support at the June lows won’t materialize, and instead, the market will have a massive selloff as the Fed minutes will not only contain nothing reassuring, but will contain stern language that scares the shit out of the bulls.
    ;)

  4. Posted by fenner on June 26, 2007 at 7:18 pm

    Michael, I was short the spy today, closed it, though, at 149.20 at 4 pm, after that it proceeded to drop 91 cents and closed at 148.29. What was that all about? Any ideas? I’ve never seen such a big move after 4 with the spys on no news.

    Thanks.

  5. Posted by Michael on June 26, 2007 at 7:26 pm

    Fenner,

    That’s really odd. I was thinking it was caused by an earnings report but I don’t see anything bad on the wires that would have caused that drop. Maybe some hedge fund blew up and had to dump a ton of SPY :-? ?

  6. Posted by bbc on June 26, 2007 at 7:43 pm

    http://www.etfdigest.com said something today about margin calls.

  7. Posted by Dr. Duru on June 26, 2007 at 8:47 pm

    Herb Greenberg’s gonna have a field day with IOC…

  8. Posted by One Way Stox on June 26, 2007 at 9:22 pm

    I heard on CNBC that the S&P futures dropped like a brick in a bathtub after hours — yikes!

  9. Posted by Keith Shepard on June 27, 2007 at 10:02 am

    Ahh…so that might have been part of that IOC drop. Thanks for the Briefing.com info, Mike. Hmmm…looks like the sellers are back today. Woof…$44 to $24 in two days.

  10. Posted by fenner on June 27, 2007 at 10:52 am

    Michael, heard bob p on cnbc say that last night there was a huge sale of futures last night at the close, lots of talk about it but nobody knew who did it. so the futures and the cash are trading apart this morning…. as are the spys and dias.

    thanks for your great blog, by the way.