March 29, 2024

Daily Wrap

DJIA +128.78 (+0.88%) to 14,802.24; S&P 500 +19.12 (+1.22%) to 1,587.73; NASDAQ +54.54 (+1.94%) to 2,859.21

Gap and go explains today’s action as we gaped higher on the open and then rallied the remainder of the day with the S&P 500 closing up over 1.2%.  No need to spend anymore on the that.

No real big news on the Economic front today but tomorrow we have Unemployment Claims tomorrow with the consensus forecast I saw of 362K.  Coming of that poor Job numbers, I think this will be watched closely and I will update the site with the number when it comes out at 8:30 am EST.  Where?  Thank you for asking, in the Event’s Calendar.

Earnings season will start to pick-up now and today there were a few names moving on their reports.  CarMax (KMX) gained nearly 4% today after reporting numbers pre-open that met EPS estimates and beat revenue.  I am sure having an up day on its side didn’t hurt today’s move either.  Moving lower after announcing earnings was Titan Machinery (TITN) which lost just over 14%, although closed off the day’s lows.  TITN beat revenues but greatly missed EPS for Q4 and then when providing forecasts for 2014 they again guided higher for revenues but much lower for EPS which Wall Street clearly didn’t like.

Interesting Tech news out today from the Wall Street Journal who reporting Yahoo (YHOO) and Apple (AAPL) are in talks to to expand YHOO’s presence in the iPhone and iPad.  I am not sure if this will be something like what Facebook recently launched tied to the Android platform or pre-loaded apps of some sort.  Might be interesting.

In analyst notes today, there was a few big names including IBM (IBM) which received an upgrade to Buy at UBS with a $235 price target.  Also getting an upgrade was AmerisourceBergen (ABC) which was upgraded to Buy at Goldman.  On the downside, Aeropostale (ARO) was downgraded to Sell at Goldman with a $10 price target and also by Goldman, France Telecom (FTE) was downgraded to Conviction Sell.  I question the FTE call and I don’t have the note but this is a very beaten name.  Just because something is low doesn’t mean it won’t go lower but I don’t think I will follow them on this one.  Some of these and other upgrades and downgrades for the day can be found each morning when I post my 9 @ 9 in the Upgrades/Downgrades section.

I stay on a few boards to gauge sentiment of traders and just see the flow of the retail investor/small advisers.  Every dip has been met with the question or flat out statement “this is it” and other general rooting bearishness and that is just not how a top is set.  When the top will be I don’t know which is why the stance has been stay in, don’t time but decrease capital along the way.  Use stops and when you close out a trade think about allocating less capital to the next trade.  Congratulations S&P 500 on making all time highs today and yes while there are some concerns with light volume and divergences in place and earnings be lack luster and a litany of other items; the trend remains higher for now and must be respected until lost.

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