It was small gains across the board for the major market indexes. The Nasdaq, SP, and DJ all started the day with a nice rally. However, by the end of the day the Nasdaq sputtered out but the Dow Jones Industrial Average managed a very respectable close. It should be noted that the Dow Jones Industrial Average outperformance was caused by Altria (MO) and its 6% gain.
The Dow Jones Industrial Average rallied .7%, the SP 600 was up .3%, the SP 500 was up .2%, and the Nasdaq lagged with a .1% gain.
Volume was lower on the NYSE and about the same on the Nasdaq. Breadth was positive.
Today's action was pretty much random meaningless trading. The lack of trading could be due to all eyes being on the upcoming jobs report. But weren't we just saying that all eyes were on Ben and the Fed? I think so. Whatever the reason is, it doesn't matter. We just need to know there is not a lot of action right now and an observant stance is probably the best play for now, if you are new.
The upcoming jobs report is getting some negative spin due to the possibility that the Fed could take the data as an indication the economy is still on fire and more hikes are needed. To be honest I don't care what could happen I just need to know what is happening now.
What is happening now is that the markets are still under some very important major moving averages, the leaders that are breaking out are ALL in defensive sectors, there are a lot of nice charts showing up but once again they are in defensive sectors, and the follow-through from the rally attempt is still alive. Basically a mixed bag of tricks. I still think this rally has some legs but it wouldn't not surprise me at all to see us fail at some key resistance level and turn back down.
The stocks breaking out and setting up in the Medical, Food, Beverage, and Consumer Plastics sectors don't give me a lot of confidence this is going to be a major rager of a market. However, there are some nice charts offering some great patterns and gains and there is also some stocks trying to set up. If they breakout I will trade them but will still keep my defensive posture until I see better quality stocks show up on my scan.
It is still very bearish out there and a rally from here is still in the cards according to the recent trend. Be careful out there and I will see you tomorrow on Investors Paradise.
New Swing Longs: EMS BKD AMV--to see charts of new longs/shorts go to Investors Paradise.
New Swing Shorts: GYI XNPT CSC
Longs Outperforming: IHS-67 TZOO CTCI-72 GPIC-33 SYKE SEIC DGX CXW WBMD PAY-40 TSCM-171 CPY ABI AKAM-122 NWS CBEY LCC-171 FVE BMRN DMX CTS Q-81 GMTC-32 UHCP
Shorts Outperforming: SWC JOYG BPFH USG RTP MEOH VCG MAFB BTH FRZ ISCA BBBY GTRC CTCO
Stocks On Radar Screen: JOBS NICH DLP AMAG
1 comment:
AMV is for real...company is liquidating (selling 12 office assets)...stock is worth $5 - $6....it makes sense that stock is finally ticking up since announcement of deals should be coming in next few weeks...
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