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Better Economic Data Inspire The Market

|Includes:AMZN, ANF, DNDN, GOOG, Goldman Sachs Group Inc. (GS), HIG, PETM, TIVO

This morning, better retail sales numbers got the market in a cheerful mood.  In addition, jobless claims were less than expected.  Financials rallied, led by GS, which added +5.89, or +3.73%.  Techs were also strong, led by GOOG and AMZN.  After being "dormant" for the past 2 months, GOOG and AMZN had awakened in the past few days.  GOOG gained more than $30, about +6%, in the past 4 trading sessions, while AMZN managed to go up more than $10, about +8.5%, in the same period.

On Monday, we booked some profits on AMZN.  This morning we cashed out an overnight win on a GOOG trade:
March 04, 2010
06:53 | HappyTrading GOOG ($551.20) Sold to Close 03C550 Mar 550 calls, at $9.00 +43%

These GOOG Mar 550 calls went as high as $12 and closed at $11.

This morning, ANF reported a +5% in its sales.  Its shares went up +14.57%!  Last night, DNDN reported positive study results on its drug Provenge.  DNDN added +3.66%.  PETM shares reached a new 52-week high today, up +8.01%, after delivering strong 2010 guidance.  TIVO soared a whopping +61.9% after winning a court ruling aginst Dish Network (NASDAQ:DISH).  HIG continued to go higher, up +3.9%, as investors speculate a potential buyout.

The Dow was up +47.38 points; SPX added +1122.97 points; Nasdaq gained +2292.31 points:

INX2 (internet) led the market with a +1.49% win.  XLF (financials) garnered +1.01%.  Commodity sectors were mostly in the red, as the dollar rose on better economic data.  GLD (gold) and SLV (silver) both slid.  USO (oil) and UNG (natural gas) were also down, with UNG losing 3.7% on higher-than-expected supplies.  FXI (Chinese ADRs) slipped 1.52%.


SPX added +4.18 points to close at 1122.97, above the 1120 level.  Its 10-day and 20-day MAs went up.  Its MACD was higher.


Nasdaq gained +11.63 points to close at 2292.31.  Its 20-day MA went above the 30-day MA.  The MACD glided up.

The market has been surprisingly strong ahead of the unemployment report tomorrow.  SPX finally closed above the 1120 level.  Nasdaq is showing a new bullish formation its daily MAs.  Commodity sectors were weak today, seeing some profit-taking after the recent rise.  As mentioned above, techs and financials were stronger.  Most market analysts are expecting a weak jobs report tomorrow.  If the report indeed comes in weak, we might see the market range-bound in some volatile trading.  The dollar would be likely under pressure, but, the commodity sectors may benefit.  If the report is inline or strong, the market should get a morning pop, especially in the financials and techs.  Tomorrow is Friday, if the market does pop in the morning, we should see some profit-taking in the afternoon.

Good night and HappyTrading! ™

Disclosure: positions: none