Fears on RIMM customer acquisition costs rising has the Quad-Qs badly lagging the recovery off of the morning lows (QQQQ -2.2% vs. SPY -1.3%). Price has been relatively stable (though it's starting to roll), all things considered, but the VIX is rising, and the AD line and adjusted tick are negative, so be careful playing the fade trade.Political hay sure is flying. Economic slow-down aside, for now it seems no one wants to be too short ahead of the weekend and a potential plan agreement.
10:30AM PST: Finding resistance at the pivot (SPY) and five day ma's (QQQQ), respectively. QQQQ's in particular are having trouble getting motivated, maybe more of an underlying economy message to traders?
2 comments:
Morning Jeff,,
I would bet you are looking for a entry into C, for a monday,,,pass trade,,Banks seem to be the apple of everyones eyes now,,hard to think of it...
Mac
Not enough of a pullback in Citi for me to consider, though this am would not have been bad. I have a small position in IAT to reduce company specific risk on that idea though. And good relative strength in spite of all the vol.
Best, J
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