Daily Wrap
DJIA -89.24 (-0.69%) to 12,878.13 S&P 500 -7.35 (-0.52%) to 1,398.94 NASDAQ -8.99 (-0.30%) to 2,967.79
For the majority of the day the S&P hovered around even. In the early trading there was a dip that was promptly bought and rallied but it wasn’t until after 2pm when the markets started to move lowered into the close and stayed that way closing near the lows of the day.
The stock of the day was Monster Beverage (MNST) up over 13%. A letter from the FDA to Dick Durbin noted that they will be conducting an investigation into the potential danger of MNST products. Doesn’t sound good then why go up? Because they also noted in that same letter that they do not see any issue with the two main additives of MNST’s drinks. I was personally somewhat shocked to see that added to the letter but that was clearly the catalyst. Kudos to anyone who had it. While it was on my radar because of the news and basing pattern, I was not yet ready to allocate capital. From here I think the news was good but I still have trouble moving into MNST here. I don’t expect them to be a value stock but I also don’t know if I am interested in paying the asking price for their growth.
Another stock of the day was Deckers Outdoor (DECK) which was able to close above its 50 Day SMA. I noted on Stock Twits (WSConsensus) that this one is trekking toward are near $40 initial target and that stops for us would be just under the 20 Day SMA but a more aggressive swing trader could also look at the recent $32.80 lows which is currently above the 20 and then switch to the 20 is it exceeds that level.
Last name for today is Crocs (CROX) which received an upgrade to Buy at Goldman Sachs along with a $17 price target. CROX looks ok to me and I somewhat lament not seeing it earlier although I would have preferred a longer base. Watch the $14 level which could/should be first resistance and then the next target would be filling the gap around $16. I will follow-up with charts tomorrow.
Back to the S&P but no chart today as even with the down day today not much has changed. The 50% fib is holding as resistance for now and on the downside we have the 35% fib from the 9/14-11/16 move at 1393 and then shorter term looking at the view from 11/16 bottom into 11/23 holiday rally we have the 23% also at 1393, 38% at 1383 and 50% at 1376. I will be watching that confluence around 1393 first, then the 200 Day MA at around 1384 and lastly the 50% or recent move at 1376. Otherwise still the bias is to play good stock set-ups and take profits or hedge, while the rally off the 11/16 lows in the S&P was impressive, it is hard to call all clear yet.
From the Event’s Calendar for tomorrow:
10:00 AM New Home Sales; 10:00 AM Crude Oil Inventories; 12:15 PM FOMC Member Tarullo Speaks; 2:00 PM Beige Book
According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: AEO, ANN, GIB, EXPR, JASO, JOSB, MOV, LEDS, SPH, TFM, YGE