STTG Market Recap Jan 8, 2015 – Stock Trading To Go
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Thursday’s rocket move upward is exactly the type of session that bears have had nightmares about for years on end. What looked like nothing more than an oversold bounce yesterday to offset some pressure turned into a huge move today. Weaker economic news out of Europe raised hopes for more aggressive European Central Bank action and in the new world order of markets, bad news is often good news because it means central banks coming to the rescue. The S&P 500 gained 1.79% and the NASDAQ 1.84%. Remember, tomorrow morning we have the monthly employment data from the U.S. government.
In a letter to European lawmakers, ECB President Mario Draghi said the ECB would reassess its monetary-policy stance early this year, and that ECB moves could include sovereign bond purchases, Bloomberg reported on Thursday. The next interest-rate decision by the ECB is scheduled for Jan. 22.
Looking at the indexes, Thursday saw a return of the S&P 500 back over a key support/trend line – each time it breaks that line the past 6 months we have a short (very short) retreat. And then we immediately push right back above it. It looks like the index wants to do that again. So thus far it seems the 100 day moving average was the bottom on this pullback. Same for the NASDAQ/
The NYSE McClellan Oscillator turned back positive today. We want to see this remain positive for sustained upward action.
You can see the big drop in the volatility index today – this pullback was so short we did not have a chance to see VIX rally to the highs of mid October or mid December.
This is day 3 of a tremendous move in Nordic American Tanker (NAT) – we highlighted this stock among others in our Monday evening “idea” session (video) and it’s been a glorious move. You never know which set ups are going to make the move, hence a reason you have a portfolio approach. Look at the volume explosion all week.
Two days ago we had the former CEO of Yahoo say Twitter should come out and buy it. Today we had a hedge fund say Yahoo should buy AOL. It’s like 1999 all over again. AOL (AOL) is another name we have highlighted the past few weeks in our videos and it gapped up just over the blue downtrend line, thus for tactical traders it was a place to buy just under $47 in the first 5 minutes of the day. That led to a $2.50+ move.
Marvell Technology (MRVL) is a semiconductor company which has been around quite a long while – some news broke today that China Electronics (CEHD) would make a bid for Marvell’s phone chip business.
Who is Brunswick (BC)? If you have ever been on a recreational boat – Brunswick probably made the motor (Mercury) or the boat itself (Sea Ray). News broke late yesterday after the close that business in the “mini yacht” business of Sea Ray is booming so they are expanding production. Low gas prices probably help here.
Due to the overwhelming market reception and solid retail demand for its new L-Class yachts, Sea Ray will increase production capacity by reactivating its Sykes Creek manufacturing facility in Merritt Island, Fla. The expanded production will commence in the summer of 2015. Hiring will begin immediately, and the company expects to create up to 100 new jobs over the next 12 months.
Original article:
STTG Market Recap Jan 8, 2015 – Stock Trading To Go
