STTG Market Recap July 1, 2014

Indexes gapped up Tuesday morning on positive Chinese economic data and continued their rally all session in another light holiday day.  The S&P 500 gained 0.67% while the NASDAQ soared 1.14%.   In China the HSBC/Markit purchasing managers’ index (PMI) for June rose to 50.7 from May’s 49.4.  There was a key manufacturing report from ISM which is widely followed each month; the Institute for Supply Management’s manufacturing index came in at 55.3 in June, nearly unchanged from May’s 55.4 reading. New orders rose to a six-month high.  With both these measures a reading over 50 signifies expansion.

Indexes continue to act well but a lot of the action is in individual sectors and stocks.

spx nasdaq

Let’s also look at the Russell 2000 of small caps which had a great day today – when we see NASDAQ and Russell 2000 lead this is very bullish for the market.

rut

We continue to see growth oriented sectors lead – here are some key ETFs:

Consumer discretionary as shown by XLY ETF

xly

Technology as shown by XLK ETF

xlk

Specific within technology we mentioned semiconductors last week – the ETF is SMH

smh

Biotechnology was a group that has been leading this market for a few years, and then finally suffered for a few months earlier this year – we mentioned this ETF down in the $230s and how it was one to hold unless it broke support (blue dotted line).   Today was a big day for the group.

ibb

We mentioned housing the past few days – the ETF continued up today.

itb

Just for fun – we said GoPro (GPRO) would catch attention of the momentum traders and it continues to give great gains in a short time.  This one closed in the low $30s its first day of trading and you can see how far it’s moved.

GPRO

So we are now halfway through the year – Bespoke blog shows up how the major asset classes have fared:

Bespoke

 

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