STTG Market Recap Apr 30, 2013

More poor economic news – more record highs; it’s the market of 2013.  The S&P 500 gained 0.25% and the NASDAQ 0.66% as the rotation into tech stocks continues and any and all news is considered positive.  Today it was the Chicago Purchasing Managers index which fell to a contractionary level, and at its lowest level since late 2009.  Doesn’t matter – stocks sold off for all of 2 hours before roaring back.  There was a decent consumer confidence figure but that usually is not a big market mover. For the month fo April the S&P 500 gained 1.81% and the NASDAQ 1.88% as this year’s winning streak has no relent.   News flow will pick up dramatically in the next few days as central bank announcements and key economic reports on manufacturing, services, and employment hit.

It appears we can now point to this uptrend from mid November as valid once more as the lower end of the channel is holding nicely for the S&P 500.

The NASDAQ has also pushed back into its channel with the outperformance the past few days.

The McClellan Oscillator is flashing short term overbought as we hit a new record on the S&P 500.

We can see the move into more “pro-cyclical” areas such as semiconductors below.

Apple (AAPL) continues its recent winning ways – today they priced a massive $17B bond offering which was gobbled up as there is so much liquidity sloshing around the world, desperate for any yield.  More importantly as stock investors the stock has now finally jumped back over its 50 day moving average AND made a new higher high versus the most recent high – items we noted last Friday was key to a trend change.  This should benefit the whole tech sector and especially the NASDAQ.  That said the stock has come a long way in a few days and some consolidation would be beneficial.

Sources said investors could barely submit orders fast enough to get in on the deal from Apple, the only major tech company without a single penny of debt on its books.  The six-part all-dollar offering attracted more than $50 billion of orders by midday in New York – a massive level of demand even in the current red-hot climate of the bond markets.

Emerging markets also have seen a nice bid in the past week as a major rotation seems to be back in place from the defensive sectors to the more aggressive sectors.  See the major trendline that has been broken.

Tesla (TSLA) has been one of the superstars of the market of late – you can see it has surged far away from even the 10 day moving average.  That said today could have been a short term reversal as the stock jumped over the previous days high and reversed quite sharply – on significant volume; usually a sign of exhaustion in the near term.  But it has become a momentum favorite.

Speaking of, 3D Systems (DDD) which specializes in 3D printing seems to be back in favor after a turn with the momentum traders early in 2013, followed by a huge selloff.  Today it had earnings which were received warmly.

The maker of 3D printing systems met earnings estimates, slightly beat revenue  forecasts and reaffirmed full-year guidance. Earnings per share minus items came in at 21 cents, up 24% from Q1 2012. It  was the seventh quarter in a row of double-digit EPS growth. Revenue rose 31% to $102.1 million, $1 million above consensus estimates of  analysts polled by Thomson Reuters and the 13th straight quarter of double-digit  growth.

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