kaltbaum early notes

Combine the ok reaction in JPM and WFC with this…the rumor of the ECB buying up Euros…which jacked the market up…especially the down and out commodity areas and the down and out weak dollar plays…namely IBM. The rumor is probably true…but frankly, couldn’t care less. Markets were near term oversold. Put buying was huge yesterday so all this gives market a chance to bounce off support which is right around the 50 day for all the major indices.

 

Leading growth names at or near the 50 day are CERN,DLTR,EQIX,MNST,SHW,TRIP,ULTA,V…Names like EQIX,SHW,V bouncing off 50 day already…but just keep in mind, just forming new bases. Strongest group remains housing but dont have anywhere to buy those names right now.

 

If you look at the OIH,XLE,XOP, they have little handles here…so also have a chance to rally a bit of weaker dollar/stronger euro…that helps major indices. Seems every move comes off a government move because the economic numbers out this morning were less than expected again.