STTG Market Recap Jan 12, 2015 – Stock Trading To Go
BLAIN UPDATE – Interview with Ross Cameron of DayTradeWarrior now available for viewing!
Watch tonight’s video market recap on my Ticker.tv channel, Mark333.
Indexes continue to be troubled with the drop in oil as the S&P 500 fell 0.81% and the NASDAQ 0.84%. As we said Friday, in good markets you don’t sell good news and that is what happened on the generally solid employment data. So it was a bit of a warning. It was a strange day because a lot of names we have been highlighting in our recaps actually had really nice days but it was a soggy day overall. Again we are just about to enter earnings season so be aware of when your stocks report.
The indexes are somewhat challenged here. We have a trend line on the S&P 500 connecting the October lows and December lows, and that is being challenged as we speak. If that breaks later this week it is an issue.
The NYSE McClellan Oscillator has reverted to negative. We want to see a sustained period where it stays positive – it only went positive for 2 days.
Ten year Treasury yields continue to act poorly – maybe the drop in oil plus this drop in yields is signaling a slowly economy in the future. In the past this would be true.
Speaking of oil, another horrid day. We said in our video recap Friday how if you turned this chart upside down it was a great “breakout”. You had a big move, then a consolidation, followed by a big move. The pattern is the same to the upside or downside. But since it was to the downside we noted it looked like another bear flag had formed. And today we fell out of the bottom of the bear flag.
A lot of names we have mentioned the past 2 weeks actually had great days today so that’s good for our readers. Biotechnology continues to be a star – a name we mentioned last week as a “breakout” name out of a range – NPS Pharma (NPSP) was acquired by Shire for a modest premium. So congrats to anyone who got in this name. Once it broke out of its long yellow range around $38 this was a name we highlighted, and within days it was acquired.
Other names we have highlighted in the biotech patch also roared today – here are two.
I cannot find specific news but both Whole Foods Market (WFM) and Sprouts Farmers Market (SFM) had strong days – we mentioned the former in the past 10 days and the latter last week.
Lululemon (LULU) has been talked about repeatedly in both the videos and written recaps. Today it boomed as it raised guidance. Often a good chart precedes good news as “those in the know” get information before the common folk like us do.
Lululemon Athletica raised its fourth-quarter earnings and sales outlook after a strong holiday season. The yoga-apparel maker sees EPS of 71-73 cents, up from an earlier outlook of 65-69 cents. Analysts polled by Thomson Reuters expect 69 cents. Lulu now expects Q4 sales to be $595 million-$600 million, vs. its prior guidance of $570 million-$585 million. Analysts expect $588.6 million. Same-store sales are seen as rising 6%-7%.
One group I noticed doing well in my weekend scans are the REITs (Real Estate Investment Trusts). They were up as a group today as seen by the ETF for the group – IYR. While overbought near term it is worth highlighting this group as an area of strength.
Tiffany (TIF) was a big loser on the day – it did the opposite of Lululemon (LULU); it warned on future earnings.
Tiffany shares plunged after the high-end jewelry store reported dull holiday sales and lowered full-year profit guidance. The company known for jewelry packaged in iconic blue boxes now expects full-year EPS of $4.15-$4.20, down from an earlier outlook of $4.20-$4.30. Analysts polled by Thomson Reuters are expecting $4.33.
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STTG Market Recap Jan 12, 2015 – Stock Trading To Go
