$50 is the new $5….
The Market: As expected, volatility continues and $50 point swings are becoming as common as $5 point swings use to be. We expect volatility to remain high but would not be surprised to see the magnitude of the swing start to temper. Today was important because after two straight days of gap ups that sold off into the close, today managed to hold and extend on the gap after an intraday pullback. As we noted in Monday’s write-up, the market is very short-term oversold and we would expect a bounce so today’s action is not surprising but we will be…
Major Market Indices down near or over 2%!
The Market: We warned in last week’s update that we viewed the pattern in the market as one that warranted caution. In the short term we view the market as very oversold and due for a bounce. Ideally we would like to see a failed rally in the Futures overnight that results in a gap down in the cash index which provides an opportunity to get long in early trading. It is also worth noting that the SPY closed right at the 200 day SMA & EMA which should act as support — even if only short term. Looking…
Daily Wrap
DJIA -42.55 (-0.28%) to 14,932.41;S&P 500 -0.88 (-0.05%) to 1,614.08;NASDAQ -1.09 (-0.03%) to 3,433.40 The S&P 500 started today looking as though it was going to recover well from yesterday’s late day sell of but again around Noon EST the market lost momentum and declined into 2:30 Pm EST where there was then a bottom and late day small rally which took the major indexes near flat for the day but well off the highs. In economic data, Total Vehicle sales bested expectations coming in at 16M units sold and tomorrow ADP employment numbers come in with an estimate of 161K. The official…
Daily Wrap
DJIA +59.98 (+0.41%) to 14,673.46; S&P 500 +5.54 (+0.35%) to 1,568.61; NASDAQ +18.54 (+0.67%) to 2,804.67 The markets opened today slightly higher and consolidating until just after noon EST when the market started to breakout and move strongly higher. This rally lasted until around 3pm EST when the market topped and then started to sell of into the close. Stock of the day, or at least driving the headlines, was Herbalife (HLF) whose shares were halted which sparked discussion about Icahn and Ackman and what might be going on with the shares. Ultimately the news was KPMG resigned as auditor amidst allegations of insider trading by one of…
Daily Wrap
DJIA +38.16 (+0.27%) to 14,127.82; S&P 500 +7.00 (+0.46%) to 1,525.20; NASDAQ +12.29 (+0.39%) to 3,182.03 Today started on a down note but landed the S&P 500 right into its 20 day SMA which it promptly held and started to make its ascent for the remainder of the day. We had no noteworthy economic news today and frankly not much is really on tap tomorrow. The market will be left to its own devices and whether or not it can continue to press higher. I will have more below but the futures chart is trying to build a case to argue for higher levels….