Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Yesterday after the bell we had some high profile misses from Google (GOOG) and Microsoft (MSFT). This followed some by Intel (INTC) and Ebay (EBAY) the day before; offset by a decent reaction to IBM (IBM). Futures are down some this morning but in relation to the significant damage seen last night in after hours in some of these individual names it is relatively contained. This week has been one for digesting the “V shape” move off the late June lows. There is what appears to be a bull flag being created from which an attempted breakout happened yesterday but is being rejected today at the open. For bears breaking Tuesday’s lows to cause this bull flag to fail (at 1672) would be their first concern, whereas bulls want to see 1685 surpassed again as they did yesterday morning. More broadly speaking a market can consolidate through time or (lower) price; this week it has been time.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/index.php/the-fund/holdings
