Marketview: 80 Points And Running, Financial Select Sector SPDR (XLF), Freeport-McMoRan Copper & Gold Inc. (FCX)

It was a huge week for the market as stocks rallied five days in a row in very volatile trade.  The $SPX is 80 handles off the lows made early in the week.  Select financials caught a bid as well as retailers and industrials.  Bad news was good as negative economic reports and rogue trader losses were shrugged off.

Healthcare and utilities traded relatively weaker which points to some more safety trade coming off and into riskier assets, which is short term bullish.  Does this mean everything is hunky-dory?  No, but it does mean that this rally has some gas left in the tank.  News over the weekend is $UTX looking to buy $GR which should take investor minds off of European problems.  $FCX has been a bellwether stock since I can remember.  It was on the losing column this week along with other basic materials, so I feel the primary trend is still negative.  I can’t wait to print some meaningful lows so that we can get back into bull mode.

Read: United Technologies Exploring Goodrich Takeover (Bloomberg)

We’ve been validating this price area for some time and we need to go somewhere.  I think that we see some further upside before meaningful downside.  1250-1260 is in the sights of the $SPX.  This will be accomplished with the index printing 20-30 point daily swings of course, so precision targets are pretty useless.  We also have a wildcard in the Fed announcement next week.

Winners: $MET, $USB, $C, $MA, $HD, $LOW, $GE, $UTX

Losers: $FCX, $HAL, $SLB, $JNJ, $PFE, $ABT, $AEP, $EXC

 


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