6-13 Afternoon Update

The PPI news came out, but the mixed data was confusing to the market. The Dow is everywhere- Started down, rallied up, and now a cup and handle is forming by noon. The news today was important, but the CPI data that comes out tomorrow will be more influential. There are currently two scenarios for the rest of the day- market reads data as inflation friendly and thus perceive it will extend to CPI’s results, or market will once again exit on fear of the unkown. It’s quite tricky here since a lot of the downside is already priced in.

Stocks showing midday strength:

• ZOLT, sell off on low volume early in the day, but is rapidly recovering.
• TIE, although the buy-sell ratio is skewed heavily to the sell side (5:82)
• GLG, although gold continues to slide
• AAPL, one of the strongest stocks of the day.

Interestingly, the Dow, S&P, and Nasdaq have approached their highs of the day at noon. Still, the “high” is not so high (about +30 for Dow), so let’s hang around for a potential fall out to the red.