STTG Market Recap December 9, 2014 – Stock Trading To Go
Friendly Reminder from Blain: Tonight I will be streaming live from 9:30 PM – 11:00 PM EST on http://ticker.tv/stockjunkie. Will be going through several hundred charts, running some screens, and talking about the market. I will also be streaming tomorrow morning from 8:30 AM – 10:00 AM. Join me!
Indexes in the U.S. opened down as big selloffs in the Chinese & Greek markets impacted the open but as the day went by dip buyers returned to the market lifting stocks to their best levels by the end of the day. The S&P 500 fell 0.02% while the NASDAQ gained 0.54%. China was affected by a move to improve the bond markets (which is a “negative” in that a lot of China’s growth has come via a debt explosion at the local level), while Greece has issues with politics again.
Yesterday we mentioned the NASDAQ had broken this upper end trendline for the first time in nearly a month but that it was not necessarily a big deal … and it could come right back and jump back over it soon. Well that happened today. And note where the S&P 500 bottomed this morning – exactly at our long term trendline. This trendline connects the highs of early 2014 with the lows of June/July so it has impact obviously.
The NYSE McClellan Oscillator remains in the red and hence a yellow caution flag.
The Shanghai Composite Index tanked. Moving to propel local governments from using hazy financing instruments to raise funds, China stepped up its efforts at creating a more transparent municipal bond market. Certain lower-rated bonds can no longer be used as collateral for some short term loans. We mentioned this chart last week and it was EXTREMELY overbought; it very rare for an index to be this far away from the 20 day moving average.
Speaking of overbought, Visa (V) is another chart where the 20 day moving average has not been sniffed in a while.
Autozone (AZO) continued a recent surge today after the auto-parts retailer reported quarterly profit and revenue above estimates.
Verizon Communications (VZ) dropped after saying phone discounts and promotions will hurt profitability at its wireless business.
Lululemon Athletica (LULU) advanced after Wells Fargo Securities analyst Paul Lejuez raised his rating on the clothing company to “outperform” from “market perform.”
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STTG Market Recap December 9, 2014 – Stock Trading To Go
