Stocks Stage An Impressive Reversal Off The Morning Lows; Stock Indexes Close Red, Across The Board
March 2, 2007 | Leave a Comment
Stocks started off the day with a nasty replay of the action on Tuesday. However, stocks found support shortly after and managed to rally to a respectable close, helping rescue trapped longs. Early weakness caused by a selloff in Asian and European markets (China down 2.8%) and inflation worries quickly sent stocks for a loop. The core personal consumption price expenditure index rose .3%, giving it a year over year increase of 2.3%. That is ahead of the Fed’s target 1-2%. But shortly after that nasty gap down, the ISM manufacturing index came in with a 52.3 reading, above the neutral 50 level. This and a heavy round of short-covering sent the indexes higher and even sent them into the green. But in the final hour, sellers reasserted control, ending the hopeful wishes of a green close by the bulls. Read more
Stock Indexes Erase Early Morning Losses, Rallying Into The Close, Closing Near Their Highs Of The Day
February 17, 2007 | Leave a Comment
Stocks fought off morning weakness, caused by a revenue warning from MSFT, and rallied the rest of the day to close flat and near the highs of the day. This bit of news from MSFT particularly hit the Nassy the hardest as MSFT represents 6% of this index. The strength in the indexes in the face of the selling in MSFT shares can only be seen as impressive. Many traders expected much worse, considering that the news came on top of a report showing Housing starts falling 14%. Read more
DJIA And SP 500 Outperform On Strong Volume; Nasdaq Flops Around In A Tight Intraday Range
February 14, 2007 | Leave a Comment
It was a tale of two tapes as the DJIA and SP 500 rallied quite well while the Nassy lagged as big-chips received bids. The reason for the outperformance was due in large part to shares of AA. Reports that BHP or RTP are bidding for the Aluminum giant helped the big-caps rally. Adding to the power behind the big-caps was MMM announcing a big buyback plan to buy $7 bill of its own shares. That, btw, is very bullish for a stock. Read more
The Tip-Off I Refered To On Wednesday Had Its Follow-Through On Friday
February 10, 2007 | Leave a Comment
It is kind of odd that a comments from the St. Louis Fed head William Poole, Cleveland Fed head Sandra Pianalto, and Dallas Fed head Richard Fisher could kick start a selloff like it did today, but that is in fact what happened. Stocks started off strong but his comments that he would vote for a hike if inflation stays above 2% was not what wall street was looking for. The momentum of the market took a turn on Wednesday and those comments, along with MU announcing price declines, sent stocks falling across the board with leading stocks in leading sectors getting hit hard.
At the close, the Nassy led to the downside with a 1.16% loss, the SP 600 lost 1.03%, the SP 500 took a .71% hit, and the DJIA fell .45%. The bad news, without a doubt, came from leading stocks. The IBD 100 index got hit with a 1.8% loss. Not good.
Volume was higher on the NYSE and significantly higher on the Nasdaq. This volume and price action gives both indexes a clear distribution day. Thus making it three distribution days in the past four weeks. Caution flags are rising.
Stocks End The Week With Strong Gains, After A Very Quiet And Choppy Session
February 3, 2007 | Leave a Comment
Stocks were able to hold on to the post-Fed gains, as uncertainty over interest rates off the job data helped keep stocks tight. Jobs coming in below estimates, unemployment ticking up, weak gains in wages, and a lower revision to the Michigan confidence numbers were all good reasons to knock stocks down. But strong factory orders and a clearly powerful uptrend was good enough to shake off the jitters that can be seen today in your intraday charts. Read more
Dovish Fed Helps Give Stocks A Big Boost, As Stocks Rise Across The Board.
February 1, 2007 | Leave a Comment
Investors were definitely happy to see the Fed leave rates unchanged–even though I am not sure what else they were expecting–and rewarded the stock market with gains across the board. The Fed stated that core pricing pressure subsided, which relieved inflation concerns, and stated that economic growth was firmer and the housing market has stabilized. These comments without a doubt contributed to the gains. Read more
Stocks End The Day Mixed But Flat From Friday, After A Wild And Volatile Session.
January 29, 2007 | Leave a Comment
Stocks ended mixed, after a wild day of trading, as traders positioned themselves ahead of the Fed meeting. To me, it just showed that the bulls and bears are both being very stubborn here and are evenly matched.
At the close, the SP 600 was up .4%, the Nassy finished up .2%, the DJIA ticked higher by .03%, and the SP 500 diverged closing with a .1% loss. The IBD 100 finished up .4%, keeping pace with the SP 600.
Volume was lower on the Nasdaq and higher on the NYSE. The higher volume on the NYSE does not make today a distribution day because the index was not down .2%.
Read more
Nasdaq Suffers A Distribution Day, As Stocks Fall Across The Board; Big Caps Hold Ground.
January 18, 2007 | Leave a Comment
Stocks suffered a rough day, on Wednesday, as INTC’s pricing battle against AMD weighed heavily on the Nasdaq, with INTC selling off. A weak Fed beige book report and a stronger than expected PPI, more than likely, did not help either.
At the close, the Nasdaq led the way on the downside, falling .75%, the SP 600 and the SP 500 fell .1%, and the DJIA fell .05%. Today, unlike yesterday, the IBD 100 and leading stocks led to the downside, falling .8%. The IBD 85-85 fell .6%. Read more
