STTG Market Recap Feb 9, 2015 – Stock Trading To Go
VIDEO UPDATE: Market analysis looking at long term charts, movers on the day, and analysis of 50 stocks with setups and buy points.
A relatively quiet session for the indexes after last week’s fireworks as the market saw a small gap down at the open followed by a small rally and then a late day selloff. The S&P 500 fell 0.42% and the NASDAQ 0.39%. Greece continues to be in the news but a lot of this is rhetoric:
Greece’s new leftist Prime Minister Alexis Tsipras said on Sunday in his election pledge that he would end the country’s “cruel” austerity program and ruled out an extension of international bailout. Starting Wednesday, Greek banks will not be able to use Greek government bonds as collateral in daily refinancing operations with the European Central Bank.
News out of China was probably much more important as that economy continues to slow:
China reported that exports fell 3.3 percent in January from a year earlier, while imports slumped by 19.9 percent, both missing expectations by a wide margin.
Interesting factoid: Regressive analysis by Wunderlich Securities showed that since crude began its plunge last year, the S&P 500 has had a 0.70 correlation with crude, up from the low 0.03 correlation the two have had for the last 25 years. In English? The market is really tied to oil of late. This simply means the market and oil are moving in the same direction on a day to day basis (not the same % up or down each day).
The S&P 500 never got over our upper trend line in purple while the NASDAQ fell back slightly below a breakout level. Not the best follow through action here.
The NYSE McClellan Oscillator has faded back to near flat.
Oil has now rallied to the 50 day moving average. It doesn’t need to break through immediately but seeing a surge through in the next 3-6 sessions would bode well for a continued breakout.
Fast-food giant McDonald’s (MCD) reported global same-store sales shrank 1.8 percent last month, which was worse than analysts had been expecting.
Oil driller Transocean (RIG) was a big winner today as investment firm Blackrock (BLK) hiked their stake. It’s always nice when you can buy a stock quietly, then watch the world see that you did some buying, and shares skyrocket = instant profit.
Transocean rose the most in seven weeks after BlackRock Inc. raised its stake in the owner of the largest fleet of offshore drilling rigs. BlackRock was the third-largest holder in Transocean with 6.8 percent of the outstanding shares as of Jan. 16. The vote of confidence by New York-based BlackRock comes less than a week after Fitch Ratings Ltd. lowered its outlook on Transocean to negative, citing “the possibility that a prolonged oil price drop will compound the effects of the offshore rig oversupply cycle resulting in weaker than previously expected market dayrates and an acceleration of the fleet rationalization process.” A glut of new offshore rigs is competing for less work as producers reduce spending amid collapsing oil and natural gas prices.
Hasbro (HAS) jumped after the toy company turned in stronger quarterly results. Sales of toys geared toward boys surged, led by Transformers, Nerf and Marvel-brand action heroes. Hasbro also raised its dividend and expanded plans to buy back its own shares.
Scanning through charts this weekend, one area that stood out with recent strength are the homebuilders. This group was terrible in 2014 but are showing relative strength; here is an ETF for the group (ITB).
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STTG Market Recap Feb 9, 2015 – Stock Trading To Go
