This is a 9:45 intraday update of Turov on Timing for Wednesday, April 27, 2011.
1. After the close yesterday, Amazon came out with much lower than expected earnings. The stock traded down to about 170. This morning, it’s trading above 185, and it’s pulling the NASDAQ higher while the SPX and the DJII languish just slightly above breakeven.
2. The CNBC newswoman who explains the morning opening (sorry, I didn’t catch her name) said at 9:31, “I haven’t met anyone who thought that anything Chairman Bernanke might say would derail the stock market advance.” Historically, when everyone agrees, they’re usually wrong. I don’t know how many people she’s “met” and asked, but if it’s more than a handful (and there’s no way of knowing) then that is certainly bearish information.
3. While Chairman Bernanke’s news conference is scheduled for 2:15, the announcement of the Fed decision is scheduled for noon. That’s 2-1/4 hours earlier than usual.
4. Markets “usually” move higher in advance of Fed announcements.
5. My news-neutral NASDAQ model is modestly bearish.
6. My news-neutral SPX index is modestly bearish.
That’s about it for observations. Thanks for the opportunity to be of service, and I’ll email you again between 10:45 and 11 a.m..
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