March 29, 2024

S&P regains the 50

The Market:

Today did not have anything to really speak of in terms of Economic data and the remainder of the week is not necessarily uneventful but also not one of the more data laden weeks we see.  Tuesday morning brings the NFIB Small Business Index, Thursday the Unemployment Claims as well as Fed Budget Balance and Import prices. and Friday rounds out the week with Consumer Sentiment and Inflation Expectations as well as Retail Sales and PPI.  We track the data and the numbers posted in the Events Calendar.

Story Stocks:

Shareholders of Delta Air Lines (DAL) have had a lot to celebrate with the stock up over 60% YTD and they kept things rolling with an X% gain after an announcement they will replace BMC Software (BMC) in the S&P 500 after the close Tuesday’s 9/10/13.

It wouldn’t be a Monday without some M&A news and today it was Molex (MOLX) which agreed to be taken over by Koch Industries which is privately held.  News of the deal sent MOLX up over 30% on the day.

Western Digital (WDC) announced they would be purchasing start-up company Virident for $685M.  The real news seems to be the action in Fusion-io (FIO) which has analysts and investors now trying to re-evaluate what FIO might be worth based on this acquisition.  This much maligned name which is down over 50% YTD including today’s strong move could now be setting up for traders and investors alike.  FIO gained X% on the news today.

Analyst Comments:

09/09/13 Upgrades

09/09/13 Downgrades

09/09/13 Initiations

09/09/13 Price Target Changes

The Game Plan:

The S&P 500 was able to gain the 50 day on a  closing basis and could now have the upside gap in its sights.  Interesting to watch the previous time we saw a MACD cross and close above the 50 which lead to a much larger rally.  Will that be the case again or a head fake?  Long traders should want to see $1670 and $1655 hold.

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