Markets are very quiet today ahead of the 2:00 FOMC Minutes, and Ben Bernanke’s speech in Boston after the bell. Stocks opened near yesterday’s close, and have since traded in a very tight intraday range. There is very little news hitting the tape today, other than very weak overnight data out of China. However, despite the weakness, stocks are holding their bids for the time being. Currently, the Nasdaq is today’s relative leader, up by about 0.2% on the session, while the Dow, S&P 500, and Russell 2000 are all slightly lower. Metals are also trading near breakeven, while bonds are getting hit ahead of the Fed Minutes.
CHART OF THE DAY
Chicago Bridge and Iron Company (CBI) – The infrastructure concern has been strong this year, up by about 30% since January. The shares have rallied sharply since pulling back near 50 in May, and currently sit perched above their 50-day moving average. This trendline should act as support going forward, and offers a nice entry here from the long side.
I like a bullish play here with a stop placed on a close below 59. I would initially target a move back near 64, with 70 as a stretch target.
WHAT I’M EXPECTING
I’m not expecting much from today’s FOMC minutes(while many others are), but Bernanke’s speech tonight could spark some fireworks in the market for the short term. A long/short equity strategy remains optimal until the S&P 500 can break above 1660 or below 1600.