Crude oil rallies over a percent on reports that Qaddafi loyalists stage counter-attacks in Tripoli in perhaps final and desperate attempts to hold off an overthrow by the Libyan rebels. Brent crude sold off on the news yesterday, that rebels had entered Tripoli and the Oil Services HOLDRs ETF (OIH) were dumped by investors as well.
Technology stocks Apple (AAPL), Baidu.com (BIDU) and Netflix (NFLX) tried to hold up as traders took profits on the pre-market gap up, but eventually turned negative. Amazon (AMZN) also sold-off, breaking thru 200-day support, while Google (GOOG) one of the weakest in the group over the last few weeks, managed to remain positive on the day.
Bank again experienced tremendous selling pressure, especially in to the close as Goldman Sachs (GS) broke thru major support at $110 and accelerated to $105. Citigroup (C) made news lows in yesterday’s session, while Bank of America (BAC) was able to close above 52-week lows as Obama puts pressure on the New York Attorney General to get a mortgage settlement done. Also to note, UBS (UBS) will lay-off 3,500 employees, mostly from the investment banking unit.
Both Sina (SINA) and Sohu.com (SOHU) showed initial strength before selling off with the rest of the market, similar to other widely held names likes Las Vegas Sands (LVS), VMWare (VMW) and Caterpillar (CAT).
Market Bouncing Around Within Lower Pivot
Symbols: $SPX, SPY, $INDU, QQQ
The market has been a bit bi-polar over the past two-days, but still trades within that lower defined range. Should traders wait for resolution of the range before jumping in?
Which Sectors are Performing Best in Down Tape?
Symbols: RTH, SMH, XLI, OIH, XLF, GLD, SLV
Traders continue to search for relative strength in this confusing tape. Commodities continue to be the go-to sector.
Leading Tech Stocks Showing Relative Weakness
Symbols: AAPL, BIDU, NFLX, AMZN, GOOG
Most tech stocks are already trading below all of their major moving averages, but a few are showing relative strength. Can AAPL hold back above its 50-day moving average?
Tuesday’s Watchlist: LVS, VMW, CAT, CL, SOHU
Symbols: LVS, VMW, CAT, CL, SOHU
Traders will be watching Las Vegas Sands (LVS), VMWare (VMW), Caterpillar (CAT), Colgate-Palmolive (CL), and Sohu.com (SOHU).
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Disclosure: Scott Redler is short SPY
