Intra-Day Reversal

Wednesday, January 03, 2007 | 03:32 PM

It’s rarely any one single element that leads to major reversal such as we saw today. However, we can identify a half dozen elements today are significant and contributed the mid-day sell off:

1) The intraday reversal was set up by the opening exuberance and emotional New Year buying – not fundamentals.

2) The drop in Copper and Oil is reflecting a slow down in the United States economy; The CRB Index broke support at 300

3) ADP data – which in the past has been none too reliable -- surprised to the downside significantly;

4) Both Ford and GM saw sales declines of 13% in December;

5) ISM remains near the flatline, as Manufacturing is still struggling with inventory and decreased demand; (who is all excited about 51% and change?)

6) FOMC minutes reveal inflation remains the primary risk to the economy, even as it shows signs of being a "touch softer" than the Fed previously believed.

Note that the selloff in equities began an hour prior to the FOMC minutes . . .

It's still early, and after dropping 150 points, equities are clawing back. Regardless, today is quite interesting.


UPDATE January 4, 2006 5:55am

Trader Mike has a good couple of charts and several worthwhile links to those who are interested in the Technical underpinnings of the reversal . . .   

Wednesday, January 03, 2007 | 03:32 PM | Permalink | Comments (40) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Intra-Day Reversal:


gotta think today's volatility is going to make people pause.... esp since we haven't seen such volatility for a while.

Posted by: emd | Jan 3, 2007 3:44:25 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™