STTG Market Recap February 11, 2014

So far so “here we go again” as we repeat the pattern of 2013.  A very short term break of a major trend channel in the NASDAQ for a few sessions, and then an immediate bounce….but a bounce that is near vertical.  Three of the last four sessions up have been of that variety.  With Janet Yellen doing nothing to dispel the party the S&P 500 added 1.11% and the NASDAQ 1.03%.   As we said yesterday, there would be nothing ground breaking from Yellen but perhaps Wall Street just wanted to hear that for itself.

In her prepared remarks before the House Financial Services Committee, Yellen stressed continuity in monetary policy and said the recovery in the labor market is far from finished. “She hit the right notes; the theme of the day is continuity. If there were one area where she made news, it was her view that cyclical issues are still hanging over the economy, and additional Fed stimulus is likely,” said Dan Greenhaus, chief global strategist at BTIG.

The NASDAQ pattern continues to repeat over and over and over.  It is surprising really because something that has become so obvious usually fails to work.

nasdaq

spx

The NYSE McClellan Oscillator has in 4 days moved from quite oversold to nearly overbought.

nymo

A reader asked for an update on gold and silver – we see gold is trying to get out of a mini inverse head and shoulders (bullish) formation.  It was a heartbreaker of 2013 but thus far has performed decently in 2014.  Silver is butting up against a multi month downtrend line as we speak.

gold

silver

As for sectors, the sector for the past 2 years has been biotechs…and continues to be.  While the market is not yet back to highs, this sector already is.

ibb

A nice continuation move today in Green Mountain Roasters (GMCR).  Recall, it had that deal news with Coca Cola middle of last week – after a large gap up, it based for a few days forming a very short and quick bull flag from which it broke up and out of today.

gmcr

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