Stock Trading

Futures are negative across the board as fears continue about the economic recovery. We could see Fridays lows challenged today.

Continuing to watch PL, GDI, SLH, and TCB. PL and SLH were up nicely yesterday on above average volume. GDI and TCB were down but on lower volume.

GDI is being added to S&P 500 index replacing Palm. Palm is being acquired by HP (HPQ). This should add additional momentum to an already strong uptrend.

The market I believe has held up quite well so far for all the negative news and sentiment out there. Most of the headlines are really negative, but the market is not reacting as negatively.

One would have to conclude that there is some accumulation going on in the market. Big boys are buying stock that you and I are selling.

Money managers have to use weakness in the market to accumulate their positions. They have to do this so that they do not put up the prices by their own buying. So, they become buyers when everyone else is selling.

As an example of overly negative tone of the headlines see the story below from CNBC:

For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.

According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, the cost to the taxpayer could hit as much as $1 trillion. Go to the story on CNBC.