Yesterday was a Seinfeldian day …….. a whole lot of nothing was going on. Too many people tried to make the weakness late in the session out to be something, but I beg to disagree. With the S&P 500 (SPX) trading in a 9 point range, we had once again, for the umpteenth time this year, an inside day. Overall it was mixed. The stain on the day came from the consumer discretionary stocks and the Russell 2000 (RUT). Other than that I hung out with Elaine, Kramer and George.
To be honest, other than some earnings related names, I think we have more sideways action heading into the end of the month. The likelihood of a mild pullback this month has diminished to a very low probability as the multitude of inside days this year has eroded the overbought conditions. Buyers could step back into the market next week as we end February and begin March.
Techies will have something to get excited about this afternoon when Analog Devices (ADI) and Hewlett Packard (HPQ) report earnings. I on the other hand will have my mug ready when Boston Beer (SAM) and Caribou Coffee (CBOU) reports results after the market closes. Skullcandy (SKUL) also reports after the close which might be worth listening to …. pun intended.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long SAM and CBOU stock — although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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You can email Scott at scottallstars@gmail.com
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