Indices under pressure from a rebound in crude and continued weakness in tech

US Mid-Morning Recap
by TradeTheNews Staff

- The tech heavy NASDAQ is again seeing selling pressure after losing more than 50 points last week and dramatically lagging the Dow and the S&P. The SOX Index is off 1.3% while weakness can also be found in computer, networking and software stocks. AAPL –2.8% DELL –2.7% CSCO –1.3% JNPR –3.2% QLGC –1.3% MSFT –1.5% ADBE –1.6% All but a handful of Dow components are red with the only notable gains coming from C +1% GM +2.6% JPM +1.2% and T +0.8% Pfizer is off close to 1% after reporting earnings and as traders await possible news from there mid-day call. The Transportation Average is down 1.4% weighed down by higher crude prices. Even an increased buyout offer for SWFT has been unable to generate much interest in other trucking stocks. SWFT +9% JBHT +1.7% YRCW –1.4% ADFL –1.7% ABFS –1%

- February Crude futures are up close to 2% at $53 on their last day of trading before they come off the board. Oil service names are one of the few areas within equities that are seeing some buying. OIH +1% With the overall weakness in equities some money is finding its way to the Treasury markets. Prices are off their best levels of the session but yields are still lower across the board. 30-year +9/32 at 4.843%; 10-year =5/32 at 4.753%; 2-year +1/32 at 4.902% Precious metals futures are trading near today’s highs with Feb Gold up $3.50 hovering around $640 while Mar Silver has gained close to 2% trading at $13.16. The Dollar has given back much of its overnight gains and is now losing ground against the Pound. The Pound looks to have found some support from bullish mid-morning comments from the head of FX trading at State Street Advisors.

 

LIES!
Crude going up has zero correlation with the stock market going down...
ZEEEERO..

 

Many tech indexes look just like this and it started on 1/18/2007 ahead of AAPL and it was all about crushing new Call options bought during the week before expiration....People never talk about how important expiration is and how the market reacts before and after.....You have to love the Perma Bulls for the last 3 months and most indexes are flat.....

$COSTAverageMAN