STTG Market Recap Mar 23, 2015 – Stock Trading To Go

STTG Market Recap Mar 23, 2015 – Stock Trading To Go

U.S. indexes were generally positive until the closing minutes when some sort of selling program pushed indexes into the red.  The S&P 500 fell 0.17% and the NASDAQ 0.32%.  News flow was quiet as existing home sales in February were up 1.2%, to an annual rate of 4.88 million units, slightly below expectations.

Fun fact:  The S&P 500 has gone 24 consecutive sessions without back-to-back advances, the longest since a 24-day stretch in 2008.

Indexes remain in solid shape.

The biotech ETF (IBB) had a rare down day after what looked like a (short term) blowoff  spike Friday.  This is the first down day in 9 sessions!

Oil rallied as the dollar fell another 1%; while it is trying to form some sort of rally it is still below the 50 and 20 day moving averages.

Transports were slammed quite hard today – interesting to see this group NOT moving in lockstep with the broader market.

Railroads were hit very hard today after Kansas City Southern (KSU) lowered guidance.

Kansas City Southern said it now expects low single-digit revenue growth for full year 2015, down from mid single-digit growth for the year. The railroad operator said the decrease is due to slow year-to-date carload growth from the energy sector, the continued weakening of the Mexican peso compared to the U.S. dollar, and lower fuel surcharge revenues. The company said that linehaul revenue growth for all other commodity groups are in line with its previous guidance for the year. Kansas City Southern said the slower than expected carload growth will result in a 4% decline in revenue for the first quarter of 2015.

Coty (COTY) is an interesting chart that has been rallying since an early February earnings report.  This makeup company smashed earnings expectations despite lagging sales.  But nice chart – after a major move post earnings it held very steady during the correction and now is building a new leg.

Across the (Pacific) pond, thought it would be fun to show the Chinese stock market – after a huge run in December we are seeing another similar leg.  The culprit?  What else – it’s always either a central bank or government stimulus nowadays and in this case the latter.   It is interesting to see the general weakness in the commodity stocks – which have been devastated by the dollar rally – while the Chinese market rockets.  Over the past decade generally when China rallies so does commodities as China sucks in so many for their mega growth.

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STTG Market Recap Mar 23, 2015 – Stock Trading To Go

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