Intraday Market Commentary From Stifel Nicolaus - September 13
From Stifel Nicolaus' Elliot Spar
Those pundits that were telling us that Sept was going to be the worse month are now hiding under a rock. Must be the Rock of Gibraltar to cover that crowd. Those money managers that have been sidelined and have underperformed during a 7% move in the S&P may be a factor fueling the upside for the last couple of days. However, now that the worst acting groups, the financials and Semis have popped today, one has to wonder if the party is almost over. Bottom-line: I would consider taking profits and or hedging extended names. As good as you feel now about the market, it’s probably just the opposite about how you felt two weeks ago when it looked like 1040 on the S&P was going to fail. Emotions can be difficult to reign in.
INDEX IN FOCUS
PHLX Semi-Conductor Index
SOX 1 327.34 (+ 10.79)
Finally, a pop in the worst acting sector in the Nasdaq. Before you start thinking that the coast is clear, the last time the Nasdaq was at 2277 on Aug. 10, the SOX was at 344, over 5% above its current level.
VOLATILITY IN THE NEWS
CBOE Volatility Index
VIX 1 21.73 (- .26)
Broke below the Aug. 9th low at 21.36. However, at noon time it has moved back over that level. A close today with only a small decline in the VIX should dampen bullish enthusiasm for stocks in the very short-term.
OPTION BITS & PIECES
VIX Sept. Options – last time to trade is tomorrow, Positions left open settle on Wednesday’s opening for cash.
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