STTG Market Recap Apr 24, 2013

Tuesday was a quiet session of digestion and a quite stark rotation under the surface.  Money moved from areas that has been leading the market for the past 8 weeks and into more aggressive sectors; if that can continue it would be a benefit in the intermediate term.  The past few times this has happened it has lasted 1-2 days before those same sectors rolled back over.   Both the NASDAQ and S&P 500 finished essentially flat on the session, almost to the penny.  There was a poor durable goods reports in the morning but the market completely ignored it, as it has most negative news the past half year.

March U.S. durable goods orders slid 5.7% in March, the government said, marking the biggest decline in seven months. The March drop was slightly more than twice the 2.8% decline forecast by economists polled by Reuters.

No change in the indexes obviously – the S&P 500 is in day 2 of regaining the 5 month channel it lost last week – the best thing for the bulls after this quick move up is some sideways action to consolidate the move, and then a new charge towards highs late in the week or early next.

Oil woke up as did most of the commodity complex; the commodity is now back to its 200 day moving average – it would be a positive to see it break back above it.

Gold miners staged a bounce from their very oversold levels – we can see this in the ETF for the sector.

Other beaten down sectors rallied such as metals/mining and oil services.

…while a disappointing earnings report from Amgen (AMGN) hurt the previously unbeatable biotech sector.

Consumer staples also took a hit as Procter and Gamble (PG) disappointed on earnings; the stock gave back a month’s worth of price in 1 session and sits at the 50 day moving average.

The fact the market held in even as the leading sectors were hit is a testament to the bulls.  When one sector is down, money just goes to a new sector.   While it is strange to see money flow into sectors that are more pro-cyclical, on a day durable goods orders were so weak, it is the current market we are in – strange things constantly happening as people continue to try to find a place to put cash in a world awash with central bankers money.

One individual name to highlight today was First Solar (FSLR) as speculative juices return to the market and this former momentum name gets a lot of new attention.

 

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