Friday, April 24, 2009
SPY making higher high
SPY has gotten this far on the back of sentiment and "less bad" news, which is great for bulls, but short covering can only get you so far.
From this point, the market will need tangibly good news to move above the 87.20 resistance level that everyone is keyed on. Ford, AXP and durable goods were all good news today.
The white paper on the stress tests is due at 2pm, but most likely will just contain the rules put out by the feds and will act as fodder for the rumor mill. The wall of worry will get more substrate as analysts try to decipher howeach individual bank will look under the rules.
Let's still call it the Wall of Worry for now... Support is 83.70 which coincides with the current 50d MA and the previous short term low. Resistance is 87.20.
At present I am holding selected longs and shorts. Long: MRVL, BMC, TLM, GLD, SLV, FCX, various mutual funds. Short: HRB, MAXY, APOL, ALKS, HURN (about to get stopped out.) Stops are set.