Market On Open - Friday 7 March
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Another Day In Paradise
by Alex King, CEO, Cestrian Capital Research, Inc
A lot of ETFs and stocks of significance are sat right at their 200-day moving averages right now. This means that we’re likely to see extreme reactions. Either the 200-day lines in the sand hold, and algorithmic buying will push these names up towards their 50-day moving averages whereupon resistance will be encountered once more, or the line won’t be defended and automated selling will push these names a lot lower. It is very hard to say which. We have one piece of evidence in the bull camp this morning, which is the Broadcom earnings reaction:
Alex King
$AVGO printed earnings yesterday after the close, and got a yikes-cat jump up off of its 200-day - for now. How the stock closes today is of great import not just to Broadcom but also to the semiconductor sector and therefore to the S&P and the Nasdaq. So this is a key chart to watch today. Here’s how it looks at 5am-ish Eastern:
Bullish for now.
Down here at the 200 day level is a tricky time for hedges. Should you release shorts here? Add to them? Catalysts today include those AVGO earnings, an NFP print, and a Chairman Powell speech. Truly an Anything Can Happen Friday.
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Let’s get into the weeds.
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