STTG Market Recap Nov 29, 2012

Stocks continued to sing to the tune of “fiscal cliff”.  The market gapped up to start the day and it seemed like a very calm session until comments by Majority Leader Boehner roiled the markets.  The entire day’s gains were wiped out in a matter of minutes.  Of course the market rallied strongly on comments from the exact same man yesterday.  Then within 20 minutes,  comments by Senator Reid calmed markets. Of course the market sold off on comments from the exact same man two days ago. You get the picture; it is a circus out there with the markets as hostage with no change in sight in the near term.  That said, by the end of the day markets closed near the highs of the day as a very whippy November is now poised to close with a gain as impossible as that seemed mid month.  The S&P 500 gained 0.4% and the NASDAQ 0.7%.

The S&P 500 is now back near its descending 50 day moving average, which just so happens to be coinciding with the April 2012 highs – an area the market had trouble with on the way up in August before finally breaking through in early September.

The NASDAQ broke above its 200 day moving average and it too quickly approaches a descending 50 day moving average.

The NYSE McClellan indicator is closer to overbought than neutral:

It was a quite rotten day in the retail space for many stocks as the annual hype about “Black Friday” came in less than expected for many retailers.  Of course it is one thing to  generate sales, but it is quite another to ask how much discounting is required to get those sales.

  • Tiffany tumbled 6.2% to $59.80. The world’s second- largest jewelry retailer cut its annual profit forecast for the third time this year after higher diamond costs ate into margins and customers curbed spending in weak economies. The New York- based company’s gross margin, a key measure of profitability, shrank more than analysts anticipated last quarter as precious- metals costs also increased.
  • Kohl’s plunged 12% to $45.02. The department-store chain operator said same-store sales in November will be down 5.6%, missing the average analyst estimate, which called for an increase of 2.1%.



If you are curious, Bespoke Invest has a list of the 50 best performing Russell 3000 stocks YTD here .

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