STTG Market Recap June 9, 2014

Not much to add on the index level versus Friday’s comments – stocks opened down, dip buyers came in immediately and pushed stocks up but a bit of buyer exhaustion came in and all those gains were lost.  Then a late day rally pushed indexes back to the green. The S&P 500 gained 0.09% and the NASDAQ 0.34%.  We’ve been saying the past week the NASDAQ has more room to run then the S&P 500 and thus far it has outperformed but right now it is overextended.

spx

nasdaq

Here is a 2 year chart of the NASDAQ McClellan Oscillator to show how extreme it is; the highest level in that entire time.

namo

Apple (AAPL) split today and the stock rallied; it has come a long way since breaking out of the bull flag it was forming about a month ago.

aapl

Biotechs continue to outperform – we mentioned a very simple trade here….buy and stop out if it falls below support (dotted blue line).  Thus far that is a money maker.  Of course you can bring up your stop loss along the way here to lock in gains.  ETF IBB

ibb

This even as key component Gilead Sciences (GILD) had a very rough day [due to Merck buying hepatitis C competitor Idenix Pharma]:

gild

Family Dollar Stores (FDO) rallied after Carl Icahn late Friday reported a 9.39 percent stake in the discount retailer, making the hedge fund billionaire its biggest stakeholder.  Must be nice – load up on a stock, tell the public, and then make tons of money instantly. :)

fdo

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