Daily Wrap
DJIA+115.57 (+0.87%) to 13,350.96; S&P 500+16.43 (+1.15%) to 1,446.79; NASDAQ+43.93 (+1.46%) to 3,054.53;
Today started with a small move into the 1434 resistance we had noted was above last night but after some quick morning consolidation below, we were off to the races following yesterday’s big gains with another nice day higher today. Leading the way yesterday was the Financials and while they are not the broad leader again today they followed up nicely on the back of positive comments from Meredith Whitney after yesterday’s close and making the financial talk circuit today. Specifically she upgraded Bank of America (BAC), Citi (C) and Discover (DFS).
Another takeover in the news today as Nielsen Holdings NV (NLSN) announced plans to purchase Arbitron (ARB) for 1.26B or $48 per share.
A stock to note on the downside today is one I featured just recently in the Charts of Interest section as a name I would like to look at on a dip, Smith & Wesson Holding Corp (SWHC). That idea was before the horrible events in Newton Conn. and before the public sentiment which could very well affect the turn around that had been taking place at SWHC and the future earnings estimates. I think the analysis on SWHC is still valid but I also have to acknowledge the environment has changed and it is no longer the idea I thought it was. I think it will be difficult to allocate capital to a name like this right here right now and may be a name I come back to but after some time. My thoughts and prayers, along with many others, go out to those affected by those unthinkable acts.
Also making news today but not a stock is Gold, the meal. I like to use the GLD as a proxy and while Gold the metal closed below its 200 day SMA, the GLD ETF continues trading and has bounced to close back above the 200 Day SMA. GLD is not something I feel I need to try and catch the falling knife on and unless I see very extended levels in a short time frame where I can see a possible snap back, I am more than happy to wait for a more clear picture even if that means paying higher. With that being said I can also construct a situation where we continue rallying until year and and into 2013 which could equate to lower GLD prices and a better buying opportunity as a catalyst then sends the markets lower and Gold higher.
As always you can visit the Event’s Calendar for the release of economic data, scheduled meetings and other news that could move the market.
According to Briefing.com, the following noteworthy companies are scheduled to report earnings after today’s close or pre-open tomorrow so any reaction will be seen tomorrow on the open: AIR, APOG, HEI, ORCL, ATU, FDX, GIS, NAV
The SPY is currently holding the 76% fib level after breaking through in early trading albeit with not much volume. For now the “Holiday Rally” which started before the Thanksgiving holiday on 11/16 continues to have legs and target ranges are higher including 1460 in the S&P 500 index and then the September highs.
