STTG Market Recap June 20, 2014

Stocks had another solid week and the bullish stance continues as all dips are bought.  Today was a quiet session with little volatility – the S&P 500 added 0.17% and the NASDAQ 0.20%.   News flow was very quiet as much of Wall Street appeared to be in the Hamptons.

All systems go on the indexes; the NASDAQ is still playing with its highs from early March.

spx

nasdaq

Oil has held up in its breakout on the issues in Iraq this week; we’ll see if this continues next week as this commodity has continually failed in breakouts the past year or so.

wtic

If you are still in Apple (AAPL) after this big move please watch it carefully here short term as it exhibited some bad behavior today; it closed on its lows in a benign market on higher than average volume.  Perhaps Amazon’s shot across the bow in the smartphone market is hurting as today’s news about iWatches coming out didn’t help.  Or it  could be as simple as the stock made a large move (we were pounding the table in split adjusted mid $80s) and need a rest/retrace.

aapl

If you followed our comments on the biotech sector (IBB) a few weeks back you should be a happy camper here.  Once the ETF broke the downtrend line in blue we said this was a very simple trade; continue to hold the ETF unless/until it breaks the blue dotted line.  It never has, so anyone who entered this ETF at the time should be happy.  You could now move your stop from the $236 area to just below that $245 level which was the floor over the past week or so.

ibb

Another economically sensitive sector are the semiconductors – ETF: SMH – you can see this one is a star right now.

smh

If you think yesterday’s large move in gold while the market is at highs was interesting, our friends at SentimenTrader.com have an interesting (and bearish) stat for you:

Precious metals jumped on Thursday, with gold showing its largest one-day gain in more than six months. In the past 30 years, the S&P 500 has closed at a 52-week high on a day gold spiked the most in six months 6 other times. All 6 saw stocks decline over the next three weeks, averaging -2.1%. The dates were 6/7/89, 9/14/92, 2/13/97, 11/4/10, 7/22/13 and 9/18/13.

Have a good summer weekend and we’ll see you back here Monday.

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