The big news this morning as we awoke was that QE3 may be back on the table. This news is certainly helping markets today, and gold and silver are rallying on the news as well. The markets had a rough two days, and certain sectors have had it far worse, but this news (from the Wall Street Journal) certainly gives traders confidence that the Fed still has a watchful eye out for them, and that is always a plus for stocks.
Europe is also up on hopes that a Greek deal on swapping bonds can be reached, we all know how this story usually plays out but keep in mind there is an actual deadline today, so we do expect the deal to be reached.
Looking at Asian markets we see that most are down:
All Ordinaries - up 0.66%
Shanghai Composite - up 1.06%
Nikkei 225 - up 2.01%
NZSE 50 - up 0.32%
Seoul Composite - up 0.94%
In Europe we see green across the board:
CAC 40 - up 1.81%
DAX - up 1.62%
FTSE 100 - up 1.05%
OSE - up 1.50%
BioCryst Pharmaceuticals (BCRX) has remained strong, even in a down market. For those who understand the pipeline, looking at setting up a trade here might not be a bad idea. We unfortunately closed our trade out far too early on this one, but 40% in 1-2 weeks is never something to disregard.
Gap, Inc. (GPS) was able to stay above the $24/share level during this most recent turmoil and we find ourselves attracted to the stock as a momentum play. Maybe just a day, maybe a week but this is something we will be looking at for a momentum trade. For those looking at it for a long-term trade, it could also be that as it appears that they are beginning to get all three of their large brands cranked up and performing well. When all three perform well, the shares historically zoom, and it is usually at that time that the company rolls out a new concept which propels growth even higher.
We recently talked about Pandora (P) and the analyst report which thought they would turn a profit and make inroads on Sirius XM Radio (SIRI). Well we found out pretty quickly that they are stumbling and are having difficulty making inroads on the competition. Maybe if they were on Facebook or tied into some other social media sites they would do better, but the truth of the matter is that they must take on their clones first, and Sirius second. This news was certainly bearish for Pandora which was down hard yesterday, and should give the Sirius bulls confidence going forward, as well it should.
Banks led the way higher yesterday, and that was good to see. What was rather disheartening to see was that Regions Financial (RF) lagged its peers. Nevertheless up is up and we will stick with our thinking from the other day. Today may be a better gauge on its performance going forward, and if we are up like Asia and Europe indicate we should be (along with our own futures) then we should learn a lot. This is something we will be watching today.