The market stayed down Tuesday after opening lower but held the 21-day moving average. After a strong bounce of lows from the Japan earthquake, investors are taking some profits and waiting cautiously to re-enter macro longs as the Japan nuclear crisis takes a turn for the worst and earnings season kicks off. Alcoa Inc. (AA) got the ball rolling on Monday with a mediocre report, and JP Morgan Chase & Co. (JPM) is on tap early tomorrow morning. As long as the S&P continues to hold its 21-day MA, this is nothing more than a technical pull-back, but the action the rest of the week will be telling.
Trading was slow today as traders looking for a bounce were perhaps a little over-eager. The biggest moves were the products of headlines. Tyco International Ltd. (TYC) surged nearly 7.5% as talk of a possible takeover bid from French engineering giant Schneider surfaced. Identive Groupn Inc. (INVE) more than doubled, jumping 113.91% after an article appearing on Seeking Alpha detailed the company’s new potentially lucrative relationship with Google.
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*DISCLOSURE: Scott Redler is long AAPL, INVE, REE, ROYL, GLD. Short SLV.
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