STTG Market Recap March 17, 2014

Stocks rebounded Monday after their roughest week in well over a month, as the Crimea vote for Russian rule came and went without as much fanfare.  The S&P 500 gained 0.96% and the NASDAQ 0.81%.  Stocks gapped up strongly at the open and stayed in a narrow range most of the session.   Economic reports had U.S. industrial output rising in February; up 0.8 percent, and better than the 0.1 percent rise anticipated by economists. And, the March Empire State Factory Index climbed to 5.61 in March after a reading of 4.48 the prior month.

A bit amusing where the S&P 500 bounced; that purple trendline as shown on a longer term chart (which we usually do Wednesdays) connects the major lows since last summer.

spx

nasdaq

The volatility index came in very sharply today.

vix

It is worth noting that gold had what is termed a bearish “outside day” – that is when it rallies over the previous day high but ends up closing below the previous day’s low.  That can be a near term bearish signal so keep an eye out on it.

gld

There were 2 big pieces of news in the internet space.

Regarding Yahoo (YHOO) there was an announcement that Alibaba is going to come public – this is partially owned by Yahoo.

Yahoo Inc. is expected to sell about half its 24 percent stake in Alibaba as part of an IPO that analysts believe could raise $15 billion. That means Yahoo is likely to collect several billion dollars from AIibaba’s IPO. That money could then be used to pay a special dividend to shareholders or buy back more of its stock.

yhoo

Regarding Sina (SINA), they announced an IPO plan for Weibo which is China’s version of Twitter.

According to Weibo’s SEC filing, Sina Corp. (SINA) owns 78% of Weibo, Alibaba Holdings own 19% and the management another 3%.

sina

Not related, VMWare (VMW) has hit some screens of late – showing tremendous strength in this market, although right now it is very overbought.  Today it received a buy recommendation from a small brokerage firm.  Here is a good article perhaps helping to explain why it is acting so well.

More recently, the company is making some progress moving into newer areas including cloud-based computing and Software-Defined Networking, Sherlund says in his research note. With SDN, software takes the lead role in managing computer networks. “Management is bullish on the market opportunity beyond the core vSphere virtualization product,” he wrote. “Traction continues to build for VMware’s SDN solution. VMware also announced a commercial release of Horizon DaaS, its desktop-as-a-service product, with competitive pricing and immediate availability.  “We believe the longer term growth opportunities continue to expand as VMware delivers a richer product set targeted at … both private and public cloud platforms.”

vmw

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