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February 17, 2006

Crisis in investor confidence hits DELL, Fri., Feb. 17, 2006, 4:02 PM

Consumer confidence and higher PPI numbers weakened the U.S. equity market today. But the seeds had already been sown. I pointed you yesterday to DELL and said that how traders would react to a great quarterly corporate earnings report would foretell the direction this market is going to go.

Here is the evidence. Not very pretty for the tech bulls. DELL was down about "4.9 pct in price today. That's about $4 billion in case you're wondering.

For the record, bull markets don't start like this. But they do end this way.

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Posted by Posted by Bill Cara on February 17, 2006 04:02:48 PM | Category: 45 Info Technology

Discourse

I think the market took the news from DELL quite lightly with only INTC showing solidarity and going lower. DELL has to work on its problems like HPQ did(it closed higher). DELL's mgmt has a lot of credibility and the market will have the patience to wait for signs of improvement in the performance of the company. DOW continues to close above 11000.It is a bullish sign.

Posted by: Marp [TypeKey Profile Page] at February 17, 2006 5:44 PM [link]

Bill-

The THs are already telling us that the next two rate hikes are "already priced into the market". Wait a darn minute. I thought we were running the thing up because the end of the hikes was near. They need to get their stories straight.

Should I be wary of Gold move on options expiry day? Should the strength be seen as position squaring?

Finally, apologies to Trader Mike for the blunt post. If he is saying $USD is toppy in the ST, well I agree that. MACD and Williams%R and slow Stoch say that. Longer term, I have to say that PPI makes the case for the next two hikes self fulfilling.

Posted by: MarkM [TypeKey Profile Page] at February 17, 2006 6:13 PM [link]

Marp-

Dow run up looks thin to me. I am often wrong but it needs more breadth to be sustainable IMHO. Not crying about PG though!

Long PG.

Posted by: MarkM [TypeKey Profile Page] at February 17, 2006 6:15 PM [link]

MarkM,

Take it easy on my good friend Trader Mike. It was Trader Mike who put me onto his blog links that happened to signal Barron's, which was the first Big Media reference to me. Two weeks later Forbes took note, etc, so I have a lot to thank Trader Mike for. And later he encouraged me to use links and graphics, etc, when I was first learning to blog. So he helped me, and I in turn helped people like Gala Time, and that's the way this Blogging World evolved. For the 22 months I have known Trader Mike and started to blog, it's been quite an eye-opener to me.

And btw, you sharing the same hometown wouldn't have anything to do with your references of PG would it? :-)

ok, I'm just pulling your leg. You know I have PG on the Cara Global Best 100 Companies list!

Cordially,

/Bill

Posted by: Bill Cara [TypeKey Profile Page] at February 17, 2006 6:28 PM [link]

MarkM,

Did you confuse Trader Mike with Mover Mike? Don't think Trader Mike has commented lately on USD, while Mover Mike has.

I enjoy both blogs, btw.

Posted by: Juker [TypeKey Profile Page] at February 17, 2006 9:56 PM [link]

Juker-

Yes, I did! Got my Mikes mixed! Sorry for the confusion!

Posted by: MarkM [TypeKey Profile Page] at February 18, 2006 5:22 AM [link]