We had a classic low-volume, oversold bounce off of support today. The textbook short setups haven’t worked well for the bears. We had some clear distribution lately but after tomorrow, Bernanke’s printing press will kick into high gear for the next 5 days into month end seasonality. It would be tempting to sell some positions on a further pop tomorrow morning if one caught the bounce over the last two days. Weekly claims numbers tomorrow morning, as well as leading indicators and Philly Fed report will give us some clues. Perhaps Thursday’s dip will set up another buying opportunity? A few interesting tid-bits from my online explorations today and I listed them below.
1) Computex 2011 will kick off in Taiwan between May 30th and June 4th. Many key electronic manufacturer and suppliers are based in this area and it would be very interesting to see what comes out. It could be a catalyst for certain technology stocks.
2) LinkedIn (LNKD) 7.84M share IPO priced at $45.00 This is the high end of the $42.00-$45.00 range. Shares will start to trade on Thursday and values the company at about 4 billion dollars. It will be interesting to see market’s reaction to such a hot initial public offering. I am still waiting on the big guns like Facebook, Groupon, and Twitter to IPO. Will the market top before grand daddy Facebook come to the market? Hmm… Obvious pin action trades would be stuff like BIDU and SINA which have ran quite a bit, but may still be worth it to keep an eye on during deep corrections like yesterday.
3) My update from my friend who works at an electronic component supplier that supplies components for hot gadgets like the Ipad: “June booking is very good and work load will double and they plan to hire at least two more employees to work in the warehouse.
4) Fertilizer had being a dog lately with MOS getting hurt when Cargill announced they will diversify their stake in the company. The MOS secondary will be priced tomorrow and may offer a buy on the dip if one believes we still have a shortage of crops to feed the world population.
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