If the market is getting repetitious it is not just you. The S&P 500 is up 9 of the past 10 days (and the down day was meager) and up 13 of the past 16 days. That's 80%+ of the days during the past month. The daily sector rotation continues and Wednesday the defensive sectors that have been pushed aside the past few weeks made a return to the action. The daily economic news is now almost meaningless to the market as we saw a few reports today such as the NY region manufacturing report that came in below expectations - but no one really cares. At some point actual data will matter again but not right now. The S&P 500 gained 0.51% and the NASDAQ 0.26%.
Back to autopilot mode..... After some excitement and a potential breakdown in the middle part of April, stocks have resumed their march upward with most indexes notching 10 gains in the past 12 sessions. In this environment the main concern is not piling in when stocks are short term overbought and of course buying every dip. Under the surface a move to more cyclical sectors continues as today was a rare day in 2013 that healthcare, utilities, and consumer staples all sold off yet the market rallied. The S&P 500 gained 0.19% and the NASDAQ 0.42%. News flow was slow; there was some Chinese service data released that showed significant slowing but the market is ignoring it.
Final Survey Reminder from Blain: The Q1 2013 Reader Satisfaction Survey will be open through the end of the weekend in case you have not taken it yet. Thank you in advance for helping us keep our Daily Market Recaps great.
The McClellan Oscillator continues to be a crude but handy tool in alerting us of short term exhaustion points of selling. Friday was no different. Despite a big miss by IBM the Dow Jones Industrial Average finished in the green (barely) and continued its streak of not having a single 3 day losing streak in 2013. Considering that company is by far the largest weight in the 30 company index, that is a minor miracle - the Dow finished up 0.07%. The S&P 500 0.88% and the NASDAQ 1.25% to cut losses in what was otherwise the weakest week of the year. For the week the S&P 500 was down 2.1% and the NASDAQ 2.7%. Without major economic news most of the gain was due to stock specific gains such as those in Google (GOOG), Microsoft (MSFT) and the large cap biotech companies which rebounded sharply after their one day of major losses Thursday.
Quick Reminder from Blain: Yesterday I posted the Q1 2013 Reader Satisfaction Survey. If you have not taken it yet, please do, we want to hear from you, thanks!
This week's selloff continued Thursday although a last hour rally pushed indexes well off their lows. Apple (AAPL) fell below $400 and technology was weak in general, and today healthcare finally joined the party in being weak. In corrections they generally get to every sector eventually so there is normally not a good place to hide out other than cash (or certain types of bonds). Most of the move today was just technical as economic data was mixed; weekly jobless claims inched up a bit and the Philly Fed survey came in light. The S&P 500 fell 0.67% and the NASDAQ 1.20%.
Stocks continued their bounce off the Friday morning lows, and with a late day rally indeed erased all those losses, closing above Thursday's final prices. There was no real news to explain the move, it seems to just be the well ingrained buy the dip mentality. The S&P 500 gained 0.63% and the NASDAQ 0.57%. Small caps continued their third day of outperformance after a horrible start to the previous week, gaining 0.89%. After the bell, Alcoa (AA) kicked off earnings season with a slight beat but other than being the first to start off this period, it usually has little impact. More important names come late this week and the following few.