The market started off strong and soon gave way to what appeared to be some nasty selling. However, the strength of this rally continued, with buyers bidding stocks higher, thanks to some help from the Fed beige book, into the close.
At the close, the SP 600 led the way with a 1.3% gain, the SP 500 rallied .9%, the Nasdaq followed with a .8% gain, and the DJIA was the laggard with a .7% gain. The better news comes from the IBD 100 and the IBD 85-85 index. They rallied 1.7% and 1.4% respectively, leading the market.
Volume was 3% lower on the Nasdaq and 1% higher on the NYSE. The mixed trade with the gains was not the most powerful show of support by funds, however the market did shake off some nasty intraday selling.
Breadth was positive on the NYSE by a 4-to-1 margin and positive on the Nasdaq by a 2-to-1 margin.
A very good sign for the economy and the market is that GDP was revised up to 2.2% from 1.6%. The strength of this economy is evident in these numbers that keep coming out (even though recent weakness is showing up) along with the stock market gains. Stocks simply do not want to stay down.
The ability of the market to rally from that intraday selloff, after that ugly day on Monday, shows a lot of character. It was a very impressive comeback. However, I do wish that there would have been more volume on the recovery. But with leading stocks leading, I guess I have to be happy with today's performance. I am a natural optimist.
The one CLEARLY OBVIOUS trend that I have suddenly noticed today by the amount of breakouts and patterns that have all the sudden formed is the move in Oil & Gas stocks. US Integrated, Int Integrated, Field Services, US Expl/Prod, Machinery/Equip, and Drilling are all moving and have tons of stocks breaking out. A lot are coming from some rough patterns but there are a few gems here and there.
EPS and sales growth are amazing in this sector and ALL leading stocks in this sector are showing these amazing numbers. This group looks like it has more room to run. I thought the top was in but it looks like I was wrong. These fresh breakouts are ONLY bullish for this sector. Combine these charts and fundamentals along with the stock's low P/E ratios and you have stocks that are attractive to both growth and value fund managers.
We shall see what tomorrow brings. I hope you had a great day. Aloha and I will see you at Investors Paradise.
New Swing Longs: RRC BTJ GIFI IIG CTEC QI
Adding To Holdings: FBNW HOS
New Swing Shorts: NONE
Longs Up On The Day (low vol non-IBD excluded): JST-52 IGLD-51 SVNT-85 HRT-29 TYL-54 BAM-50 WGA-27 HRZ-69 IHS-86 PSPT-32 DKS-26 CPA-38 TTEC-64 TRBN-38 OMTR-46 SIGM-29 IIVI-26 CCOI-36 BONT GLDN HMSY IAAC FTEK PCCC ACP AHS CELG AOI IMA INAP VCLK CRT BEZ MIKR BLUD MAIL BMA COH CKSW MVSN ROG CMT LTM IMKTA CNH WTS FMCN SUAI UAUA TSRA TSG SQM LQDT CMG FFH BMC SEIC LWAY DECK NSTC IFOX UCTT ACTU BOT MCRS RJET SMSC SKX PRFT CVLT CBF AWH TSYS OMNI RHA MNG FLML ITC ISIS IWOV HOS OMCL AMSF PNW NRF GSIC MCDT HNZ RAH HURN NU ALXN HAS RMKR BITI RVSB FBNW TMO
Shorts Up On The Day: NONE
Stocks On Watchlist: EDU INT IOSP HOLX UHCO RCRC RKT DLB VQ THRM SGZ GHDX XCO NBL SGMO NI XIDE MKTX PGS GOAM
Cut All Your Losses: HLTH -- A SHORT!!!! Over 235 longs and none are COMPLETE SELLS. Three shorts and one is a complete sell already. What does that tell you about this market?
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