Big Fades Can Take a Toll 6/7/05 2:18 PM ET The frantic buying this morning has given way to some profit-taking this afternoon. It is primarily caused by the simple fact that the market is extended. There is no bad news and nothing negative. We just have a somewhat overheated market that is badly in need of a rest. Big intraday U-turns like we are seeing now are often indicators that the market is topping out, but we'll have to see how we close before we can draw any major conclusions. Big fades take an emotional toll on buyers, so they can't be blithely ignored. We still have solid positive breadth, which is a major plus, but profit-taking has definitely kicked in. Real money commentary
profit taking!! lol thats hilarious. the profit taking occurred in the trading range after the rally. journalists dont know their arse from their elbow - or theyd be traders!!!
14:16 Floor Talk: Hearing weakness in equity markets attributed to Fed's Guynn saying he's uncomfortable with speculation in housing. 14:26 Guynn's Comments Approximately an hour ago, Atlanta Fed President Guynn said that: "In some markets -- I won't name individual cities in the Southeast -- the activity in residential real estate looks pretty speculative to me and the makes me very uncomfortable. I don't think this is sustainable. There is a very good chance that some lenders, some buyers and some builders will get burned from what I see in some of those submarkets." As mentioned at 14:16, this seems to be contributing to the afternoon sell-off in the equity markets.
Makes no sense, if its a regional issue, eg, south-east, is he saying a repeat of texas is coming or just a casual comment from his eyeball of the statistics? imho, a large fund hit the weaker mkts after lunchtime, rolled into stops and the mkt faded.
15:02 Floor Talk: Hearing a futures selling error in the Midcap 400 may have contributed to afternoon sell-off in market averages See also 14:26 comment.