STTG Market Recap March 5, 2014

A very quiet session Wednesday digesting the big gains Tuesday.  Indexes were in a very tight range all day vacillating around the unchanged mark.  At the end of the day we had the S&P 500 down 0.01% and the NASDAQ up 0.14%.   We continue to see weaker economic data in most reports and we continue to see bulls say it is all weather related.  So the bull market continues.

ADP Research Institute reported the private sector added 139,000 jobs in February, less than the 160,000 estimated.  The Institute for Supply Management’s non-manufacturing index for February came in way below expectations at 51.6 in February versus a 54 reading in January.

Here are the longer term index charts – the NASDAQ chart has been an excellent tell for us the past year+ and if you took the opportunity to buy buy buy when the NASDAQ broke back above the lower purple line in early February, you are sitting pretty.  Of course we are now not too far from the upper purple trendline which is where these rallies tend to stall short term.

nasdaq

spx

We mentioned oil Monday potentially breaking out of a flag but of course it was news related so would be driven by the news out of Ukraine.  With tensions simmering it fell back Tuesday and completely gave back all gains today.

wtic

On Monday’s recap we wrote this regarding Facebook (FB):

If you are looking for a low risk entry for short/intermediate term trading, Facebook (FB) has pulled back nicely to its 20 day moving average here.

That was at $67.  Two days later you would have booked a cool 6% gain.  If only it was always that easy!

fb

In terms of sectors, financials have had a nice spike the past two days; this is a bullish sign.

xlf

Industrials are also leading which is another pro-growth sector.

xli

As is technology.

xlk

Combined with the small cap leadership we discussed yesterday these are the right sectors leading.

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