STTG Market Recap February 24, 2014

Note from Blain: Thank you everyone who has tweeted, linked, and shared my latest work, the 2014 Broker Review. I was interviewed by Andrew Horowitz of TheDisciplineInvestor to discuss the Review and STTG, you can check out the podcast here (interview kicks up at approx 18:00).

It was more of the same Monday as the “V shaped” bounce continues.   The S&P 500 gained 0.62% and the NASDAQ 0.69%.  The S&P 500 was at an all time high earlier in the session but broke back a bit below to close.  In the week or so ahead let’s keep an eye on the NASDAQ chart in particular and the upper purple trend line as this is where these rallies have stalled the past 1.5 years.  There was not much to report on the economic front.

Here are our indexes – there is a dotted blue line in the S&P 500 chart showing recent highs and the rest of those levels today.  With the NASDAQ the pattern has been to bounce all the way from the bottom trend line to the top trend line so we’re about 70% of the way there.



Health insurer Humana (HUM) shares rallied after the health insurer said the government’s proposed cuts to Medicare appear to be less than previously thought – look at that huge volume!


Shares of eBay (EBAY) climbed after Carl Icahn accused CEO John Donahue of ignoring or missing blatant conflicts of interest among the company’s board members, including Marc Andreessen and billionaire Scott Cook. Icahn said he found what he called “multiple lapses in corporate governance.” Icahn also renewed his call for the company to spin-off its rapidly growing PayPal business.


Las Vegas Sands (LVS) – which has a large presence in Asia – rocketed up after CEO Sheldon Adelson unveiling plans to spend $10 billion now to start developing casinos in Japan.  Japan has only allowed limited gambling until recently. But after seeing the success of Macau, Japan’s legislature is on the verge of legalizing integrated casino resorts like those in Macau and Las Vegas.  Long term this could be a huge opportunity.


One are making a bit of a move here are the oil and gas exploration companies; part of this may have to due with the spike in natural gas prices we mentioned last week.  You can see that unlike the general market in late 2013 this group was not doing much at all.  In fact it was making a series of lower highs, but now we see that pattern broken.  Here is an ETF that shows a lot of the key names in the group.


Since everyone has become a mobile phone nut today’s announcement of the new Samsung Galaxy 5 might strike your interest.


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