STTG Market Recap June 27, 2014

Much like last Friday it was a very quiet session on Wall Street as many professionals headed out to their summer retreats early.   Indexes opened slightly down to flat and hung out there all day until a rash of buyers in the closing hour.  The S&P 500 gained 0.19% and NASDAQ 0.43%.  Both continue to work on yearly highs.  The Thomson Reuters/University of Michigan’s index on consumer sentiment rose to 82.5, up from 81.9 in May; it didn’t affect the market today.

All systems go on the indexes, after playing with yearly highs this week the NASDAQ closed firmly above it today.

spx

nasdaq

Yesterday we mentioned GoPro (GPRO) and said it would be popular with the momentum crowd.  Well today’s action shows you why – after closing in the low $30s yesterday (up 30%+ from its IPO price) the stock rocketed up to the $40 area by mid day before a swoon down to the $35 area by the end of the day.  For the fast and furious out there this is the type of stock they enjoy to play.  Here is an intraday chart from ThinkorSwim.

GPRO

Continuing to more “boring” fare we have mentioned the two online real estate stocks a few times in the past month and they continue to work.  Today was Trulia’s (TRLA) turn as Zillow (Z) could use some rest.

trla

Vipshop Holdings (VIPS) is a Chinese company that held up very well during the selloff for a NASDAQ stock.  It is playing with the $190 level and has a nice long base – if it can break out, this one could see a nice move as it has a 1 month base it is working off of.

vips

Another momentum group (small group!) are the 3D printing stocks – we mentioned 3D Systems (DDD) as coming out of a potential inverse head and shoulder pattern back around $49 in early May.  After a quick spike it retraced but didn’t break any key support (near $45) so essentially provided 2 trades for the fleet of foot, and now has made a quite large move of $10.

ddd

Stratsys (SSYS) its peer in the group is also running hard.

ssys

So overall we continue to see momentum/growth names running – solar stocks, 3D printing, Chinese stocks, tech stocks, etc.   Throw in some hot IPOs as we saw this week and you see traders involved in speculative parts of the market even if the indexes themselves are not moving like they did in 2013.  When this happens it is time to be involved in the market fully; when that stops happening it is time to be cautious.

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

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