Earnings season has been a disappointment so far. Many bellwether companies are light on EPS and/or revenues and talking about weak economic conditions and lowering guidance. DuPont (DD) and 3M (MMM) were prime examples of this today. There is also speculation that Fed Chairman Bernanke will not enlist for a third term even if President Obama is re-elected.
Technically, the S&P 500 is starting today right at its 75-day moving average. The Nasdaq and the Dow Jones Industrial Average have already broken this threshold. Our market sentiment indicator has been trending down for the past four weeks. The action today raises the possibility that the market begins an intermediate-term bearish trend.
In Franco Nevada Corp (FNV), the stock appears to be rolling over. Yesterday, there was a buyer of 2300 Jan 45 puts which was 7x normal volume. In New York Times Co. (NYT), there was a buyer of 10,000 Jan 10 puts. This activity was 20x normal.