STTG Market Recap Mar 21, 2013

Another interesting session in the market as we ask "who is getting headfaked?"  Unlike yesterday when all the world's ills were ushered away by Mr. Ben Bernanke, today market's sold off sharply again as if all of yesterday's bad news suddenly did matter - but just with a one day delay.  While Cyprus remains in the news, there was decent economic news in the U.S. (weekly labor unemployment claims) and China (initial purchasing managers index) offset by more poor data out of Europe (weak purchasing managers index).  But the weight of bad data points from Caterpillar, FedEx, and Oracle seemed to finally matter.   The S&P 500 fell 0.83% and the NASDAQ 0.97%; the action was indeed disappointing considering yesterday's move in that there was no upside follow through.

As for the S&P 500 it has been a very tricky week as the index fell out of its five month channel (barely), then rallied back into it yesterday, and today fell right back out.  A case of whiplash here. For those looking for this as the start of a real correction the 1520-1525 area will be an area of focus in the coming weeks.  Bulls will want that to hold if and when the index gets there.

The NASDAQ continues to be the weaker player here of the two major indexes.

Gold has finally awoke although it had a lot of work to do to make this more than an oversold bounce.

Gold miners as shown by the ETF for the group have broken over highs of the past three weeks.

On the positive side Yahoo (YHOO) was upgraded today and broke out of a descending channel it had been in, working off a big move; we'll see if it can hold.  Oppenheimer raised the company to outperform from perform and raised its price target to $27, up $5 from its prior target.

Oracle (ORCL), as mentioned yesterday, reported last night to poor reviews.  The stock was crushed today, giving back three month's of gains in one session.

Tomorrow looks like a light session economically and last week was the first down Friday of the year (for the DJIA) so we'll see if bulls can straighten the ship.  After the bell, Nike (NKE) reported a nice quarter and may allay some of the concerns of global growth.

Global orders for Nike-branded shoes and clothing scheduled for delivery from March through July 2013, known as futures orders, rose 6 percent compared to orders reported for the same period last year. In North America, the company's biggest market, orders increased 11 percent. The company also saw a turnaround in future demand in Greater China, with orders rising 4 percent, after falling in the previous two quarters.