Stocks opened up, had a pretty significant mid day swoon but dip buyers continue to support this market. Until that changes for a meaningful period of time one must continue the bullish stance we’ve been proposing the past 3-4 weeks. The S&P 500 gained 0.13% while the NASDAQ fell 0.08%. The Philadelphia Federal Reserve Bank said its business activity index jumped to 17.8 this month, the highest level since September, from 15.4 in May. Any reading above zero indicates expansion in the region’s manufacturing.
The NASDAQ was rejected at old highs; but if the rally continues that level should be taken out in short ode.
Gold and silver had an interesting days which analysts are saying is “short covering”; always difficult to tell why these commodity moves but gold certainly busted out of a downtrend. It will be interested to see if there is any follow through.
Gold was higher as the U.S. dollar eased after the Fed signaled on Wednesday it will stick with a near-zero interest rate policy to support the economy, disappointing traders who had bet on hints of policy tightening.
BlackBerry (BBRY) surged after the smartphone maker tallied less of a first-quarter loss than analysts had expected. This is not a quality chart but was once a major fan favorite of the momentum crowd so interesting to watch as it tries to survive.
Coach (COH) was crunched as the retailer said during an investor day presentation that it expected revenue to fall by low double digits in percentage terms for the year ending June 2015. It also said it would close 70 underperforming stores. If you follow technical analysis this was a chart that shouted stay away. Until you see some form of reversal – which MANY stocks exhibited over the past 4 weeks – you don’t touch. This is why.
Celgene (CELG) had a very nice session as it announced a 2 for 1 stock split as biotechs continue to recover from a much needed correction this spring. Celgene previously had a 3 for 1 split in April 2000, and 2 for 1 splits in October 2004 and February 2006.