Marketview: Patent Portfolio Edition — Technology Select Sector SPDR (XLK), Hewlett-Packard Company (HPQ), Consumer Staples Select Sector SPDR (XLP)

The week started off in a very upbeat manner with $GOOG announcing they will acquire Motorola Mobility $MMI for $12.5 billion.  As the week wore on a lack of decisive action out of Europe weighed on the markets.  Markets gapped down aggressively following the  Merkel/Sarkozy meeting on the European debt crisis.  Bad news continues to be reflected as bad news in the equity markets, which usually means that the beatings will continue until moral improves.  Even a poor Philly FED number as used as an excuse for further selling.

Winners: $WMT, $TGT, $HD, $PM, $EXC, $SO

Losers: $HPQ, $EMC, $CAT, $HON, $HAL, $NOV

All eyes will be focused on Friday of next week with Bernanke’s speech to the Kansas City Fed conference in Jackson Hole.  Most remember that conference as the event used to launch QE2 last summer.  It’s impossible to know what will happen, but the market seems to be pricing in a Fed out of bullets.

Now that tech giant $HPQ has come out and said that their business is a mess, will other CEOs suddenly feel compelled to announce “company specific” problems?  There’s never one cockroach.

I still feel that we’re not out of the woods.  The high probability trade is for a new low to form in the broad indexes.  Money is still moving to the safety trade of consumer staples and utilities and out of anything “global growth” related like industrials or energy.  Stay light and stay nimble.



Related: Jackson Hole Might Be a Big Disappointment Sandwich For Markets (Marketbeat)

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