STTG Market Recap August 21, 2014

Despite short term overbought conditions the markets are holding up and not really coming in.  Once we turn to bull modes generally overbought conditions are worked off with sideways type action and that appears to be the situation.   Tomorrow will be some key speeches from central bankers so we’ll see if any comment they make spooks the market even for a few minutes or hours.  For the day the S&P 500 gained 0.29% and the NASDAQ 0.12%.   In economic news, the Philadelphia Fed’s business activity index jumped to 28.0 in August from 23.9 the month before.

The S&P 500 broke out to a new high while the NASDAQ continues to build on previous gains.  It would be helpful to have a little rest to allow the 10 day moving average to catch up.

spx

nasdaq

The NYSE McClellan Oscillator remains at overbought conditions.

nymo

Oil continues to act very poorly.

wtic

Bank of America (BAC) jumped after the company reached a record $16.65 billion settlement with the U.S. government related to troubled mortgage-backed securities. Analysts believe the settlement will let Bank of America’s management focus on running the company and moving it forward.

bac

Hewlett-Packard (HPQ) rallied a day after the computing company posted a surprising increase in quarterly revenue.

hpq

Shares of eBay (EBAY) surged on a report that the company was mulling a spinoff of its PayPal unit as soon as next year.  Paypal has been the crown jewel of eBay for a long time and this IPO would be very well received.

ebay

There is an interesting infographic on Barry Ritholtz site on the 10 best and worst trades of all time.

 

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