March 28, 2024

Daily Wrap

DJIA +99.22 (+0.71%) to 13,979.30; S&P 500 +15.58 (+1.04%) to 1,511.29; NASDAQ +40.41 (+1.29%) to 3,171.58

I did not expect today to be as strong as it ended up being.  I thought yesterday’s move might be the start of a more prolonged pullback/consolidation that would then give us a new platform to rally from but today’s rally essentially gained back all of yesterday’s losses.  I still do feel this action is part of a topping process but clearly the market’s won’t go without a fight.  Also with this week being a low data week, earnings will likely be a driving force.  The Q’s lead as Apple computers gained roughly 3.5% but Small Caps slightly lagged not quick gaining 1%.

The stock of the day was Dell (DELL) which has previously been rumored to be on the sale block but there was uncertainty if a deal would actually get done or not.  Dell’s board met late last night to vote on a $24.4B offer made by CEO and founder Michael Dell along with Silverlake Partners which includes, as was reported earlier by David Faber, a $2B loan from Microsoft (MSFT) who is a clear beneficiary of a strong DELL.  $24.4B represents $13.65 per share and roughly where the market was trading.

Another take over or at least take over target moving higher today is Virgin Media (VMED).  VMED closed up over 18% on reports that they are in talks to be purchased by Liberty Global (LBTYA).  Often times you will see companies come out and state they do not comment on rumors but VMED actually confirmed the reports that they are in talks but declined to give any details.

Some stocks moving on earnings today included CSC (9.16%), EL (6%) and ADM (3.31%) higher and YUM (2.91%), ACI (12.84%)and BIDU (10.10%) lower.  ACI and BIDU had both been technical trade ideas but neither ever really broke out  and also I personally don’t trade into earnings unless it is a longer term hold and then I will likely hedge the position.  I will be watching both for additional opportunities and posting updated charts is a new pattern arises.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: GAS, CVH, CMI, CVS, ICE, MRO, RL, MSG, TWX, WYN

As I noted above, today was a lot stronger than I initially expected when I was looking at the market over the weekend and then again last night.  I thought Friday provided a great test of resistance and was setting up for a more prolonged pullback/consolidation.  I still looked at this as an overall bullish pattern to then set-up for higher prices and I wasn’t surprised to see us move higher today after yesterday’s drop but I didn’t expect the market to essentially gain back all it lost.  I still think this is part of a topping process and that it behooves to wait for a better pullback and or set-up for longs.

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