STTG Market Recap March 6, 2014

Another session of mild digestion after Tuesday’s large rally; stocks started off strong but gave up some steam late in the day.  We ended with mixed indexes; the S&P 500 gained 0.17% while the NASDAQ fell 0.13%.   Tomorrow pre-market we will get labor data from the U.S. government; it has been two bad months in a row in terms of non farm payroll gains so people will be watching to see if there is some reversion to mean and some revisions upwards to the last 2 months of data due to weather.   Since the bar is so low tomorrow any positive number might be enough to give the market a jolt to push it up to the upward extreme level on the NASDAQ chart below.  (upper purple line)

In economic news:

The government also reported a 0.7 percent decline in factory orders in January, slightly more than the consensus forecast for a 0.5 percent drop.

Indexes remain on track if a bit overbought short term… keep an eye on NASDAQ in the coming days if/when it hits that upper purple trend line.

spx

nasdaq

For you wrestling fans out there, World Wrestling Entertainment (WWE) has had a mind numbing run the past half year – sub $10 to nearly $30 today; look at that volume as momentum investors pile in.   When stocks go parabolic like this after an already large run it starts getting very dangerous to own.

wwe

Baidu (BIDU) had a strong day as a lot of “Chinese internet” stocks have seen momentum money flow into them the past few weeks.

bidu

Costco (COST) had a rough session after the warehouse club operator reported a 15 percent drop in quarterly profit, trailing analysts’ estimates.

cost

Shares of Staples (SPLS) fell sharply after the office-supplies chain projected a quarterly drop in sales and said it would shut as many as 225 stores in North America.

spls

It was a rare bad day for the biotech space as Gilead Sciences (GILD) after a product recall:

According to a post on the FDA’s website, Gilead initiated a nationwide recall of of about 39,000 bottles of its Atripla treatment. Atripla is a treatment for HIV-1 infection in adults and children at least 12 years old.

gild

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Comments

  1. Angela says

    I appreciate your daily markiet update.
    Wonder how do you see biotechnology, since it has gone up so much, but has given back much too,.

  2. Angela says

    I appreciate to see your daily market update.
    Wonder how do you see Biotechnology, since it has gone up so much, but has gone down much quickly too?
    Thanks.

  3. says

    Biotechnology, focusing specifically on IBB the ETF tracking the index, has been under some heavy distribution and is in a short term downtrend. I’d look towards $250 and the 50 day moving average as key support levels to hold. This area is also where a key long term support trendline lies. Unless broken, we should expect higher prices. IBB has traded above its 50 MA for nearly four months now.