STRONG SECOND HALF AHEAD?
The second half of 2009 kicked off with a bang with both the Dow and S&Ptrading higher after reports showed manufacturing began improving, albeit modestly. The data lifted natural resource and energy stocks and offset figures from ADP which showed private employers cut 473,000 jobs in June -- more than expected.
Over on the Nasdaq , the bulls took charge of the tech sector with Microsoft higher after new data showed that its Bing search engine gained market share and Intel up on a positive comments from a Barclay's analyst.
How should you be positioned?
Instant Insights with the Fast Money Traders
I’m watching 93.20 in the SPDRs , reveals Jeff Tomasulo of SMB. And I’m being very selective in my trades because it’s a Holiday week and volume is light.
If you look at the market over the past two months all it's done is go sideways, muses John Kosar of Asbury Research. Right now I'm watching the Vix . Historically if it slips down to around 18 it signals a peak in the S&P.
And as for tech, it looks overextended to me, adds Kosar. I think it’s a risky bet to be long.
It seems to me tech will lead us out if anything can, adds Patty Edwards of Storehouse. But I’m a little skeptical, too.
I did not think Intel would get above $17 but here it is, muses Guy Adami. However I would not chase it at these levels.
FORD IN THE NEWS
Shares of Ford traded higher after the automaker said its June U.S. sales fell only 10.7 percent from a year earlier, a far smaller drop than in previous months and a sign that auto sales may be recovering.
CRT Capital put a $2 price target on this stock, reminds Guy Adami, but I don’t agree with it. Ford is raising production and gaining marketshare. I think it could go to $8.
If I were to play the sector I’d also play Ford, adds Patty
TOPPING THE TAPE: CONSUMER SHARES