HedgeFundLIVE — Let’s rewind back to exactly one year ago on March 15, 2010 and see what out Chief Market Strategist Jeremy Klein had to say on that day:
Typically, the Monday following Selection Sunday for the NCAA Men’s Basketball Tournament affords me a chance to woof up my alma mater and its far overinflated expectations of success over the next 3 weeks to all those willing to read along. Alas, since the hoops team finished with a 14-18 record, our archrival California won the Pac 10 regular season title, and Stanford’s first football game sits an endless 173 days away, I would rather jump right into the actual market commentary for the day. So shall we get right to it?
We’re close. Friday provided another interesting less than 10 handle range day on the S&P 500. Cherry picking soft expectations because of last month’s snow storms, solid Retail Sales data lifted the futures premarket into unchartered territory since the days following the Lehman collapse in 2008.
Stocks then sold off aggressively in the first hour of trade to fill the opening up gap and actually move into negative territory. To be sure, a modestly weaker than expected University of Michigan (also shut out of this year’s March Madness) Sentiment report played a bit of matador to the bulls as well, but overall, despite new 52 week intraday and closing highs made in the SPX thanks in large part to a scratch your head last hour 3+% advance in GE, the market traded poorly to again weaken another chink in the armour of this impressive 5 week rally we have enjoyed.
With my Rolling Closing Average Tick indicator climbing to the highly overbought level of 696 and half of the day’s volumes in the S&P E-Minis on Friday coming by 10:50 AM to coincide with the selloff, my confidence of a pullback occurring sometime this week has started to bubble over despite eleven straight positive days in the futures and a higher high versus the previous session’s in 10 of them.
Lost in the aforementioned GE Mack Truck explosion, however, the Financials concurrently and curiously fell out of bed such that if it comes down between a fight between Mr. Immelt & Co. and the entire banking industry, I think we all know that if the latter wants to drag down the rest of the market with it, it will do just that.
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