Daily Wrap
DJIA +3.76 (+0.03%) to 14,455.82; S&P 500 -3.76 (-0.24%) to 1,548.34; NASDAQ -8.49 (-0.26%) to 3,229.10
The continued trepidation and negativity stemming from the Cyprus debacle was in focus today as the markets tried to start with a strong open only to lay way to a strong decline which finally found buyers after just dipping below the R1 support in the futures which provided initial support and then went down to back test. After a slight dip below the R1 level, the market had positive divergence on the 5 minute futures chart and that ultimately did prove to be the lows as the market rallied higher the rest of the day (with fits and starts).
A follow-up on Apple Computers (AAPL) as I noted last night it looked poised to target the 50 day and came a few points away before turning lower. Now I would be watching how the name digests to look for additional trading opportunities. The idea that AAPL may technically look to target new lows before ultimately bottoming is not one a can categorically deny so you will want to still pick and choose entry points.
Downward dog today described lululemon (LULU) after lowering Q1 revenue and same-store-sales guidance as a result to a recall of its Black luon pants (which I guess show a little too much). If I wanted to take a stab long on LULU I would wait for tomorrow’s and if it was above today’s lows (maybe ideally a 50% retrace of today’s action) I would then use those lows to trade against. If it gaps way up or down then I would have to reevaluate after the gap.
Walgreen (WAG) and AmerisourceBergen (ABC) both moved higher today on the news of long-term pharmaceutical distribution agreement which also interestingly provides WAG the right to buy a stake n ABC. This agreement also came in the wake of WAG and Cardinal Health (CAH) announcing the end of their agreement and CAH also provided guidance for 2014 below consensus.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: ATU, FDX, GIS, LEN, TEAR
From the Watch List I raised the stops on GDX to $36.49 from $36.29. CHK which I had been giving some room to breath reached the $20.99 stop on the remaining piece and was closed.
The market yet again rebounded from a hard decline where it looked like the Bears could be back in control. The trend remains intact but the markets obviously show more fear and trepidation at these levels. Tomorrow all eyes are agan on the Fed and what they might say. Tomorrow will likely be slow until we hear more from the Fed around 2pm EST and then the end of the day could be action packed.
