Energy green in a sea of red

Index & Sector performance 6/11/14

The Market:

As we noted late last week and reiterated in Monday’s report, the S&P 500 closed outside of its Weekly (20, 2, -2) Bollinger Bands which has previously lead to counter trend moves for a few weeks to months.  While we respect the strong uptrend in the market, we also believe this is time to exercise caution on the long side, at least for the broad market.

One additional note.  While many market pundits in the media have been looking for pull back and becoming cautious recently, they also seem very willing to step back into the market after a 7-10% correction.  It is not often that the market gives you what you want, especially when many are looking for the same thing.  Therefore if we are looking to see where the market might try and make it difficult on traders we would suggest being open to a shorter pull back that doesn’t reach the levels many appear to be waiting for or for a deeper retracement which starts to evoke some fear that this may not be a buying opportunity and further even that the bull market is over.

Energy (XLE) was the only sector up on the WSC Scoreboard while Utilities (XLU) led to the downside.  In energy the biggest gainer was Anadarko Petroleum (APC) which closed up 4.23% to a new 52 week high followed by Chesapeake Energy (CHK) which gained 2.77% and is a name we would consider on a pull back.

The beginning of the week was light in terms of Economic data but we close the week strong.  Tomorrow traders will be focusing on Retails Sales and the Unemployment Claims and then Friday the attention will be on PPI and Consumer Sentiment.  We will be posting updated results in the Events Calendar as well as on StockTwits (@WSConsensus).

Economic Calendar week of 6/11/14

Reporting EPS 6/11/14 Pre-Market:

Companies reporting EPS 6/11/14 pre-market

Analyst Comments:

Upgrades 6/11/14

Downgrades 6/11/14

Initiations 6/11/14

Price Target Changes 6/11/14