STTG Market Recap Jan 7, 2015 – Stock Trading To Go
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Watch tonight’s video market recap on my Ticker.tv channel, Mark333.
Indexes had a decent bounce back day as oil finally stopped its relentless drop and some news in the housing sector helped to lift spirits. In Europe, Germany left open the door to discussing options with Greece’s next government on its debt, easing worries about a Greek departure from the euro zone. The S&P 500 added 1.16% and the NASDAQ 1.26%. The Federal Reserve released minutes from its last meeting but it mostly a non factor. In economic news:
Private employers added 241,000 jobs to their payrolls in December, surpassing projections of a 226,000 gain, according to the ADP National Employment report. The figures come two days before the U.S. Labor Department’s nonfarm payrolls report, with economists looking for employment growth of 240,000 last month and a jobless rate of 5.7%.
Let’s look at the indexes on a longer time frame as we do every Wednesday. While today was a nice day we need to see more things change before getting aggressively bullish in any manner. The S&P 500 is still below this upper trend line in purple – note each time we break it there is a quick correction. But usually the bounce backs are also quick!
J.C. Penney (JCP) surged as the company said fourth-quarter comparable-store sales will be at the upper end of its projected increase of 2 percent to 4 percent. This helped lift quite a few other retailing stocks.
Homebuilders rallied as President Barack Obama plans to cut mortgage-insurance premiums charged by the FHA.
The annual fees the Federal Housing Administration charges to guarantee mortgages will be cut by 0.5 percentage point, to 0.85 percent of the loan balance, Julian Castro, secretary of the Department of Housing and Urban Development, said today during a conference call with reporters. Under the new premium structure, FHA estimates that 2 million borrowers will be able to save an average of $900 annually over the next three years if they purchase or refinance homes.
Biotechs continue to be the “go to sector” as each time the market rallies this group is almost among the leadership.
We mentioned Nordic Tankers (NAT) in our “idea session” Monday evening (and in yesterday’s written recap) and it’s been rocking and rolling the past 2 days; huge spike in volume vs normal and today it announced a dividend.
Monster Beverage (MNST) was a major momentum stock / trader favorite in 2010-2013 but fell out of favor with some health issues and such in the past 18 months. But since August it has been on a roll; a strong day today to new highs.
If you are not a Bespoke Premium subscriber, and are a market junkie they put out a ton of interesting info. On page 96 of their massive annual report for 2015 they note:
Below is the performance of the S&P 500 in the years following annual gains of 10%+ in the US Dollar Index. As the table shows, there hasn’t been a single year since 1965 where the S&P 500 traded down following a year where the US Dollar Index rallied 10%+. The average annual gain of the S&P 500 following these years has been a gain of 15.3%, while the median gain is 14.8%.
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STTG Market Recap Jan 7, 2015 – Stock Trading To Go
