The bulls looked like they wanted to dance a little today as the market trended higher to start the session. However, after modest gains, it appears they have two left feet as Tech is weak and the slight momentum the bulls had has slowed and is running out of energy.
Economic and earnings news have been non-existent today but will pick up on Tuesday and the rest of the week.
There was some M&A action this morning which helped provide a spark as Timberland (TBL, $42.85, up $12.86) agreed to a deal with VF Corporation (VFC, $101.66, up $9.86) to be acquired for $43 a share, which represents a premium of more than 40%.
Elsewhere, Honeywell International (HON, $55.70, up $0.17) wanted to hook-up with EMS Technologies (ELMG, $32.85, up $8.05) and will pay $33 a share to do so. The deal represented a 30%+ premium for EMS and set Honeywell back about $500 million.
As we head into the second half of trading, the Dow is down 16 points to 11,935 after breaking above 12,000 while the S&P 500 is off by 5 points at 1,266. The Nasdaq is showing a decline of 13 points and is at 2,631.
We went over a lot of information this morning as far as the market clues we are watching for this week and we went over a ton of charts. In fact, our chart work for Alpha Natural Resources (ANR, $43.08, down $2.61) from mid-May is finally paying off with an 80%+ return. Subscribers, check the Members Area for the updates.]]>