March 29, 2024

Daily Wrap

DJIA +207.65 (+1.65%) 12,795.96;  S&P 500 +27.01 (+1.99%) 1,386.89;  NASDAQ +62.94 (+2.21%) 2,916.07

Today was a classic “Gap and Go” day where the markets started higher and continued higher for the remainder.  The S&P 500 is just getting into the range we were looking for on a bounce.  While upside should now be tempered, this is also a holiday trading week and in low volume weeks the market can have a tendency to drift higher.  I still would expect the 20 day MA to be resistance and a potential shorting opportunity for quick traders.

The stocks making moves today, ummm, all of them?  It really was a rising tide and justly in many cases since many names were oversold and beaten along with the market.  Maybe more importantly was the names NOT up on a day like today which included Facebook (FB).  In fairness to FB, they had their big days last week but this remains a name I cannot say “all clear” for and still cannot shake the fact that it looks as though the “teens” could ultimately be visited again before this down trend is finished.

Lowe’s (LOW) produced an earnings report applauded by Wall Street but LOW closed off the highs and is very extended at these levels.  LOW could be a long term name, I will have to do more work, but short term I am VERY cautious on this name here and personally would not consider allocating any capital to the long side and could possibly be considering a short.  And yes I would be equally as cautious on Home Depot (HD).

Tomorrow on the Event Calendar we have :

Eurogroup Meetings – Day; 8:30 AM Building Permits; 8:30 AM Housing Starts; 9:00 AM FOMC Member Lacker Speaks; 12:15 PM Fed Chairman Bernanke Speaks

Back to the S&P we are looking for a test of the 20 Day SMA to take a shot short and will likely use SPX Index options as out vehicle of choice, maybe OEX.  Also check out the MACD, does that seem like the MACD of a bottom???  Also for reference an updated McClellan, the Zero line can be resistance.

 

Comments are closed.