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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Market Notes: The Bulls Charge Back -- August 1 1 comment
    Aug 1, 2013 6:10 PM | about stocks: LNC, MET, UNM, TRLA, YELP, EWI, EWK, EWQ, YINN, JJA, GRU, CORN, JO

    Wowie kabowie! Not only did the bulls manage to quash yesterday's bear charge but they did so with a vengeance. Finally, FINALLY!, the S&P 500 was able to close over 1700, a level that seemed almost unattainable. Leading today's charge was the Dow Transport Index (DTX) which crushed overhead resistance at 660 and ended the day up a whopping 3.2%. Doing an eyeball scan on its daily chart, it looks like this was its best day since early 2012. While the VIX is low, there is more downside possible giving the green light to a rally continuation. The only internal that hasn't been fully cooperating is the negative VWAPs which, considering today's hugely bullish tone, were remarkably high. This indicates institutional selling pressure--maybe they're smelling that we're close to a market top and are starting to book some profits? I'm not sure what the reason is here unless they're dumping their losers and reinvesting the proceeds into more viable areas such as financials, insurance, and tech. It will be interesting to see how the market reacts to tomorrow's non-farm payroll figures due out before the open and if today's preliminary claims numbers will be corroborated by tomorrow's data.

    Market Highlights: Market mishigas
    So much happened today that deserves a longer write-up but I'm trying to free up my time to finish a book, so here's today's action in a nutshell:
    1. Dollar was up against all other currencies as bonds continue to sink.
    2. Europe and China country funds breaking out. (Check out Italy (NYSEARCA:EWI), Belgium (NYSEARCA:EWK), France (NYSEARCA:EWQ), Hong Kong (NYSEARCA:EWH), and China Bull 3x (NYSEARCA:YINN).)
    3. Sectors powering to new highs: Banks (NYSEARCA:KBE), Industrials (NYSEARCA:XLI), Insurance (KIE--still undervalued), Consumer Discretionary (NYSEARCA:XLY), Retail (XRT, RTH), IT (NYSEARCA:VGT), Transports (NYSEARCA:IYT)
    4. Soft commodities continue to slide to new lows: Ag (NYSEARCA:JJA), Grains (NYSEARCA:GRU), Corn (NYSEARCA:CORN), Coffee (NYSEARCA:JO)
    5. Stock Standouts (from the new highs list): Insurers--Lincoln National (LNC, $44, +6.6%), Metlife (MET, $51, +6.3%), Stancorp Financial (SFG, $56, +4.9%), Prudential (PRU, $83, +4.6%) Of these, Stancorp not only is sporting a very bullish chart (though it is looking a bit overextended) it also has a relatively low P/E of 13.
    Internet stocks zoomed on better than expected earnings from Yelp (YELP, $52) which popped 23% (three analyst upgrades helped) and from Trulia (TRLA, $45) which also jumped by nearly 20%. LinkedIn (NYSE:LNKD) just reported some good news causing the stock to pop in after hours trading today.

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  • sundate36
    , contributor
    Comments (290) | Send Message
     
    Softs are getting hammered, esp. coffee - $1.16!
    1 Aug 2013, 10:07 PM Reply Like
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  • Intraday support/resistance: $SPX 2066.5/2071, $DTX 919/922.5, $DJIA 17785/17830, Nasdaq 4757.5/4787.5, $RUT 1185.5/1189.5; $VIX 11.75/12.4
    about 8 hours ago
  • Metals regaining their luster? $SLV rebounding off of multiyear low & testing $16 resistance. Junior miners ($GDXJ) +20% since 11/5!
    1 day ago
  • Intraday support/resistance: $SPX 2064.75/2074.25, $DTX 917/924, $DJIA 17790/17865, Nasdaq 4750/4775, $RUT 1182.25/1191.75; $VIX 12.35/13.05
    1 day ago
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