Market View – 04/14/11

The market has been weak last few days and it is continuing with the same theme today. Nothing much of significance has happened in the last few days. I think the main cause of this weakness is that investors are now reducing some exposure as the summer months come closer and the end of QE2 comes closer. I had thought that maybe the market might make an earnings related bounce but looks like a lot of traders and investors are in the same thought process as me and have slowly started lightning up on their holdings. As I have noted earlier that if the market remains high I will be looking to add to my put position as we get closer to the end of April. But in case this sell off keeps going without a bounce then I will have to be happy with the gains on a smaller position size. Here are some of the my thoughts on some of the information that has been released in the last 24 hrs.

  • Unemployment claims jumped pretty strongly to 412K, this is not a good data point but unemployment claims data is quite volatile so one always needs to watch the trend over a few weeks.
  • On the positive side the labor department released data that job opening in Feb increased to the highest level since Sept 08. Total Job openings were 3.1 million which is still  well below the 4.4 million market before the recession started but trending in the right direction.
  • The year over year change in the core producer price index came in at 1.9% nothing to worry too much about yet.
  • Bad news for Goldman Sachs – The senate released a scathing report of Goldman Sachs saying that they misled investors and  Goldman executives misled congress in their testimony to congress. I get a feeling that our govt officials are desperate to get some wall street big wigs behind bars since there have been virtually no prosecutions even though we had one of the worst financial crisis in history. I think they are hoping they can get someone for perjury as getting a real charge prosecuted is looking very hard. Goldman stock is down  $4 in response to the report.
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