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Market Cheers Better Retail Numbers!

|Includes: AMZN, GPS, MON, MOS, NTR, NTR, Target Corporation (TGT)

The market opened on the downside today, as jobless claims were a little higher than expected.  But, stocks turned positive investors decided to cheer better retail numbers, instead.  Target (NYSE:TGT) added +3.02% while Gap (NYSE:GPS) gained +3.06%.  AMZN jumped +4.52% today.  There were rumors that AMZN's Kindle will soon be selling in Target stores.  AMZN closed above $140.  I think it's on its way to test its all-time high, which is $145.91 set back in November 2009.

Fertilizers made a nice turn-around today.  POT and MOS have been slipping for a month.  These were again in the red this morning, but, finished the day up about +1%.  MON has yet to find a bottom since the high at the beginning of this year, falling about $20 from $87 to $67!  It closed at $68.86 today, up +1.13%.  Both MOS and MON had recently reported disappointing earnings.  So, if this sector starts to bounce, I'd favor POT in the race.  AGU finished barely in the green today, at $68.43.  If it goes above $70, AGU can see a breakout.

The Dow was up +29.55 points; SPX added +3.99 points; Nasdaq gained +5.65 points:

Most sectors were little changed.  XLF (financials) rose +0.8% and HGX (housing) was up +0.54%.  SWH (software) stood out among the tech stocks with a +0.73% gain.  MOO (agriculture) fought its way back to green.  FXI (Chinese ADRs) still looked strong.


SPX added +3.99 points to close at 1186.44, staying above the 1180 level.  The MACD remained flat.


Nasdaq gained +5.65 points to close at 2436.81.  Its MACD flattened.

Both SPX and Nasdaq tested their respective 10-day MAs and bounced back.  The positive turn-around today was very impressive.  Last night, in my evening article, I said,

"I think we are going to see some more profit-taking before the end of the week.  But, buyers are still ready to jump in on pullbacks.  Therefore, I do not think this rally is done.  SPX did jump 20 points in 3 days, from 1170 to 1190.  So, a quick pullback is healthy."

This morning, we saw some more profit-taking, but buyers came in on the pullback.  SPX went down to 1175 and quickly bounced back up.  Closing well above SPX 1180 further shows the strength in this rally.  How we close this week can set the tone for the upcoming earnings season, which is ready to kick into gear next week. 

Good night and HappyTrading! ™

Disclosure: no positions