STTG Market Recap Jan 5, 2015 – Stock Trading To Go
We had some technical difficulties tonight so no market recap video today but I posted an idea session last night where we looked at some recent winners to see which names might be good ideas go forward, on my Ticker.tv channel, Mark333.
Indexes opened down as oil weighed, and stayed weak all day in a quite miserable session. Investors have become conditioned to V shaped rallied lasting weeks and weeks but after the 180 degree turn mid December, we’ve had normal quiet holiday trading at first but now some significant selling to begin 2014. Action in oil and Treasuries makes it look like the global economy is seriously cooling. The S&P 500 fell 1.83% and the NASDAQ 1.57%. Aside from oil there was also the normal turmoil out of Europe as some whisper Greece wants to leave the Euro.
The NASDAQ was rejected at 2014 highs and has been weak since. The S&P 500 was acting just fine during holiday trading until the closing hours of 2014. It fell back below all time highs and now has fallen back below our primary uptrend support.
The NYSE McClellan Oscillator has gone back to red. We want to see rallies supported by this in the positive zone so it’s an area of concern if there is not a quick rebound.
Ten year Treasuries are acting as if we are in a recession; yields have broken to recent lows.
Friday in our written and video recap we said that oil broke to new lows on a closing basis which was bearish for the commodity. Today it got pole axed. Crude oil prices dropped to their lowest levels since spring 2009. Russia’s oil output hit a post-Soviet high last year, while Iraq’s oil exports in December were the highest since 1980.
Last week the oil stocks themselves held up pretty well in the face of selling in the commodity which was a positive. But that wasn’t the case today as energy stocks got punched in the gut; here is the ETF (XLE) for the group.
Stocks that are a tell on global strength such as Caterpillar (CAT) took serious damage today. JPMorgan Chase & Co. analyst Ann Duignan downgraded the company to underweight from neutral. Caterpillar faces slowing sales of compressors, pumps and gas turbines as oil companies reduce spending.
While there are still pockets of strength in areas such as biotech we are seeing quite a few failed breakouts such as Apple (AAPL).
Google (GOOG) had tried to break out this past week but received no help from the general market and now joins the failed breakout camp.
One name that we have mentioned lately quite a bit did have a good day – ISIS Pharma (ISIS). J&J‘s Janssen Biotech arm agreed to pay $35 million upfront and up to $800 million in milestone payments to develop drugs for autoimmune disorders of the gastrointestinal tract using Isis’ RNA-targeting platform.
Taken from:
STTG Market Recap Jan 5, 2015 – Stock Trading To Go
