STTG Market Recap April 2, 2014

Stocks continued to chug along with a 4th day of gains after Janet Yellen fired the cannons Monday over the market saying easy money will continue longer than the market read into her post meeting comments.  The S&P 500 added 0.29% and the NASDAQ 0.20%.   In economic news:

U.S. private employers added 191,000 workers in March, according to the ADP National Employment Report. Economists surveyed by Reuters likely showed a gain of 195,000 jobs.  The ADP report came ahead of the monthly government jobs report, due Friday. Economists polled by Reuters expect a gain of 197,000 new jobs in March.

We’ll look at the longer term charts today – right now the NASDAQ appears ready to pull off the same stunt it has been doing for a year and a half… break the bottom of its long term trendline for 2-5 sessions than a strong bounce.   The S&P 500 held up very well while the NASDAQ was correcting and is at all time highs.

spx

nasdaq

We’ve seen the volatility index drop substantially the last few sessions – quite a drop from last Thursday to today.

vix

Tesla Motors (TSLA) had a nice breakout session, from a downtrend that lasted about a month.   If it can hold this breakout in the next few days it could be ready to start a new leg up.

tsla

Also a very nice breakout in Caterpillar (CAT) today – note how it barely gave anything back during the weakness we saw of late.

cat

Macy’s (M) is very similar to CAT; almost no pullback during recent weakness and now off to the races.

m

Yelp (YELP) continues its recent weakness.  It had a nice rebound session yesterday but gave it all up today as the Federal Trade Commission revealed that it had received over 2,000 complaints about the company over the last five years.

yelp

FYI:  Internet giant Google split its stock Wednesday. Class A shares will trade under a new ticker symbol “GOOGL” and the other, Class C, will trade under “GOOG.” This now means the S&P 500 will technically have 501 components (though it will still have only 500 companies).

Here is an interesting tidbit about yesterday’s 52 week high in the S&P 500 from SentimenTrader:

The S&P 500 closed at a new 52-week high on Tuesday, but only 36 of the index’s components (fewer than 8%) did so according to Bloomberg data. When the S&P reached a 52-week high in May 2013, nearly 40% of components went along for the ride. In the past decade, of the 10 times we’ve seen fewer than 8% of components reaching a 52-week high along with the S&P, only 2 managed to hold onto any further gains over the ensuing days, weeks and months (in September 2006 and January 2013).

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