March 19, 2024

Daily Wrap

While the markets were open today, the volume clearly lends to be a “holiday” style trading session with the SPDRs SPY not reaching 100M shares traded.  While overall a lack-luster day, the S&P limped higher by $0.18 to 1380.03 while the Nasdaq & Dow closed lower $0.62 to 2904.26 and $0.31 to 12815.08 respectively.

Giving us a feel of the Bull market days we had an old school “merger Monday” with 2 well known names going out including Jefferies (JEF) closing up over 14% on a takeover by Leucadia National (LUK) and Titanium Metals (TIE) gained over 40% after receiving a takeover offer from Precisions Castparts (PCP) representing a 42.6% premium to friday’s closing price.  Also Sherwin-Williams (SHW) acquired Consorcio Comex, a leader in the paint & coatings market in Mexico, in a $2.34B all cash deal.

Continuing on a positive note were stocks in the Biotech field including Gilead Sciences (GILD) which gained 13.7% on positive Hep C Phase II trial data and Celgene (CELG) which gained over 5% on positive Phase III trial of Abraxane.  Both stocks will now be names to watch as long term investors weigh the report.  As technicians you will likely want to let the dust settle and look for better set-ups to present themselves.

Not fairing so well today were the homebuilders.  The group has been on a tear lately up over 17% over the past 6 months but today Beazer Homes (BZH) fell over 17% on disappointing earnings and DR Horton (DHI) seemed to provide better results beating the EPS estimates and falling just shy of revenue but still managed to slide nearly $2 from the intraday high to the lows.  One clear concern from the CEO on the call was a reported concern regarding the lock of job creation and specifically potential layoffs in the defense sector which could affect home ownership.

Back to the Markets and specifically the S&P 500.  Trying to force this market into a bottom is difficult for me right here and while we are at oversold levels (or nearing) on many mainstream indicators, it just does feel like a bottom yet.  We could be setting up for some higher action on the 60 minute chart below but unfortunately I believe that will be met with selling until a more fruitful, and likely panicked, bottom presents itself.

That’s a wrap for tonight.  Best trading wishes for tomorrow!

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