Bedford's Tradecraft Intraday Update
9:30
ET May 05, 2007
Update 1
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* reflects closing transaction
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Open Profits
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(600)
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(s) reflects a short sale
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Market
Commentary
Bulls face a slight decline at the open. The
big headline is news from Microsoft (MSFT) that it is pulling its bid for
Yahoo (YHOO). That news is sending Yahoo hurtling lower by some
20-percent. Microsoft is up slightly. In the early trade it looks as
though commodity issues will buck the trend as commodity prices firm and the US
Dollar resumes its slide. The SPX is called about 6-points lower and while
that puts the index back near 1,408 I would be very careful about turning
bearish. Bulls should come back at that level.
We closed exactly at the SPX 1,413 trend line Friday. That is not
a huge surprise given just how important such trend lines have become in this
stock market. Still, the path of least resistance is higher. If the
tape can settle in the early part of the session I world fully expect another
run at the SPX 1,425 level in the early part of the week.
International
Business Machines (IBM) is called 70-cents lower at 122.47. That is
just below the 20 and 50-hour moving averages but the stock should regroup
early.
Caterpillar (CAT) is called marginally higher as traders
gravitate back to the commodity story. Caterpillar is a major player in
mining and energy. This stock has been
frustrating because it continues to consolidate. I expect a break above 83
soon.
Mosaic Corp. (MOS) is called almost 2-points higher. The
stock was highlighted in a Barrons report on fertilizer.
.
As always, thanks for
reading and feel free to drop me a line at
povfeedback@baresearch.com.
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