Morning Stock Report, March 26 2008
The market has gapped .5% this morning to the downside as durable goods came in with a negative note. Orders to factories of big ticket manufactured goods fell for a second straight month which provides more evidence of a struggling economy.
I am surprised we didn’t see more negativity yesterday after consumer confidence fell hard but nonetheless I am looking at the NASDAQ down .84%, and the S&P 500 down .86%.
The trends for the market have been such:
- Short Term: Uptrend
- Medium Term: Downtrend
- Long Term: Downtrend
With volume decreasing the last three days of this latest rally, today may shape up to be quite the scenario. If we see a decent sell off today of 1 – 2 % on heavy volume it could set a bearish tone for the rest of the week.
I am watching Gold climb slightly right now after making a strong rebound push yesterday with most gold stocks up 6, 7, even 8%+. If you recall on Sunday I stated, “…look for these stock to make very quick price reversals when they are ready.” Keep an eye on the GDX which is the ETF tracking the Gold Miners Index. Don’t be afraid to take quick profits though because this rally could flop as fast as it came.
Steel has recovered nicely with STLD and AKS both in position to make a run for new highs any time now. I stated Sunday on Steel stocks, “…are holding up above key support points. In fact, for those looking to step into Steel this could be a great opportunity.” The one to watch though is MTL, because as the leader of this group if it breaks down below its 50 MA it may signal trouble for the rest of the group.
Good luck out there today. I will see you this evening.
