I could use a good, stiff cappuccino. Todays action was woefully soporific. Even the slipping financial giants, Citigroup and Bank of America, failed to add much excitement to the day. The equity of two behemoths lost over 2% following their earnings reports which revealed large losses due to bad bets on the direction of bonds. The markets were as disinterested as a vegetarian in a carneceria. The broad indices fell about a half percent across the board.
Two tidbits of action caught my eye today. First, GM appears to have suffered a failed rally, starting the day about 2.6% higher to a new, interim high, but ending more than a half percent down. It seems a few traders caught onto this technical point late in the day as the stock was pushed down over 1% in the last hour. I dont follow GM closely enough to take action of my own, but it will be an interesting chart to watch to see if this proves to be an interim top.
Second, Research in Motion quietly slid about 1.8% today. RIMM has not participated in the rally of the last month. The stock is showing a lot of weakness and seems to be becoming something of a hot potato on the street. If the overall market weakens, this stocks slide could accelerate in my opinion.
Tomorrow after the bell, Intel will share a new round of polished numbers with the public. They may very well have played the game well enough to be in a position to please traders, and I wouldnt be surprised to see the stock pop after the release. But as discussed in a previous blog entry, AMD Inside, I think the gig is about up for this Wall Street darling.
Disclosure: Short RIMM, INTC. Long INTC Puts