Market Recap Aug 26, 2015


Wednesday began as carbon copy of Tuesday’s action with a big gap up at the open and looked very similar until up to 3 PM. But instead of falling off a cliff, buyers came in and there was another surge to close out the day in the last 90 minutes. The S&P 500 gained 3.90% and the NASDAQ 4.24%. It is feeling a lot like late 2007 thru early 2009 when 300-500 DOW swings were normal. The Federal Reserve did what it has done relentlessly since 2008 – try to boost the market with either actions or words.

New York Fed Bank President William Dudley said Wednesday the upheaval has reduced the case for raising rates in September, while cautioning it’s important not to overreact to short-term developments.

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Market Recap Aug 21, 2015


Interesting action the past 2 days as a normally quiet August has finally been the time when this long term range in the indexes ended. While it feels bad in the moment, probably the best thing long term for this market was a long overdue correction. Each time it looked like we might have one bulls came to the rescue and then we just went right back to a market in purgatory. Even going farther back than this year we have gone a very long time without even a 10% correction which is a very normal thing. So a lot of complacency had come into the market and it is good to shake it out every 8-12 months. Today the S&P 500 fell 3.19% and the NASDAQ 3.52%.

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Market Recap Aug 11, 2015


China moved markets up yesterday and moved markets down today. The S&P 500 fell 0.96% and the NASDAQ 1.27% – both indexes finished a bit off their lows. China continues to wave their magic wand to support markets and the economy as the People’s Bank of China depreciated the yuan by nearly 2%.

The drop in the daily peg to 6.2298 renminbi against the U.S. dollar, down from 6.1162 on Monday, was the largest one-day move in more than two decades and took the currency back to levels from three years ago. The central bank described the decision as a “one-off depreciation.” “I think the market’s perception is if China is doing that they’re really worried about their economy,” said Jason Leinwand, managing director at Riverside Risk Advisors. “Any currencies that have direct ties with China will be weakened.”

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Market Recap Aug 5, 2015


Indexes gapped up at the open but came off their highs to drift in a tight range in the afternoon. The S&P 500 gained 0.31% and the NASDAQ 0.67%. Economic releases were mixed. The non-manufacturing ISM index soundly beat expectations, hitting a 10-year high of 60.3 in July. The ADP report came in at 185,000, below expectations for 215,000 private-sector payrolls. Markets digested hawkish comments from a Fed voting member, Atlanta Fed President Dennis Lockhart. In a Wall Street Journal report, Lockhart said the economy is ready for an increase in short term rates and conditions would have to deteriorate significantly in order to persuade him not to move.

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Market Recap Jul 30, 2015


Indexes opened with mild losses to start the day but buyers came in late which is usually what you like to see. The S&P 500 finished flat while the NASDAQ gained 0.33%. In economic news, U.S. gross domestic product came in at 2.3%, slightly below economists’ estimates. The department revised its first-quarter GDP reading to a 0.6% increase from a 0.2% contraction.

Both the indexes are at or near their big yellow blobs (long trading ranges). The NASDAQ is – once again – trying to escape. At this point trying to play an index breakout has led to failures so many times that traders will be reticent to believe the next one as they will just assume it will fail.

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Market Recap Jul 17, 2015


Hello Readers: Last notice. If you did not take the ST quarterly survey Tuesday, please take 30 seconds and answer just a few short questions. Thank you.

Quick Note from Blain: Friendly reminder, Mark Minervini’s $1500 coupon expires this Sunday at midnight for those interested in attending this year’s Master Trader Workshop with Mark Minervini, David Ryan, and special guest Dan Zanger.

Bulls polished off a great week with a quiet Friday as the S&P 500 gained 0.11% and the NASDAQ 0.91%. Tech stocks were on fire as Google (GOOG) led to buying across the space. Inflation remains benign as the June consumer price index (CPI) showed a fifth-straight month of increase with a rise of 0.3 percent, in-line with estimates. Stripping out food and energy costs, the core CPI rose 0.2 percent after rising 0.1 percent in May. Housing starts rebounded strongly in June, up 9.8 percent, and building permits surged to a near eight-year high.

Kicking the can down the road again? Mission accomplished.

The European Council approved a 7.16 billion euro ($7.7 billion) short-term loan to Greece. Germany’s parliament voted in favor of authorizing its finance ministry to negotiate a third bailout with Greece.

The NASDAQ clearly broke to new highs as the S&P 500 is peaking its head out of this nearly half year range.

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Market Recap Jul 16, 2015


Hello Readers: If you did not take the ST quarterly survey Tuesday, please take 30 seconds and answer just a few short questions. Thank you.

After a quiet day of rest it was back to a positive tone Thursday as indexes gapped up big at the open and stayed positive all session. Greece seems increasingly in the rear view as the consensus now is a deal will happen and cans will be kicked down the road (a position we have offered to our readers continuously for 3 months), and positive earnings have buoyed spirits. The S&P 500 gained 0.80% and the NASDAQ 1.26%.

European stocks closed higher amid news that European Central Bank President Mario Draghi confirmed an increase in emergency funding to Greece by 900 million euros ($978 million) over one week. He added the ECB would “grant in principle a 3-year ESM stability support to Greece, subject to the completion of relevant national procedures.” Following the central bank relief announcement, a senior Greek official confirmed that banks would reopen on Monday. The local banks and Athens exchange have been closed for more than two weeks. Greece will implement changes to value added tax from Monday, the finance ministry said in a Reuters report. The move fulfills a key pledge in the bailout deal the cash-strapped country reached with international creditors. Very early Thursday morning, Greece’s parliament approved a stringent reform bill amid violent protests by locals. The legislation paves the way for financial aid worth 86 billion euros ($94 billion).

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STTG Market Recap Apr 23, 2015


After last Friday’s selloff on the China news, this week has been generally quite positive as the earnings parade has been unleashed. Today was another such day as a slight negative open was bought and the S&P 500 finished up 0.24% and the NASDAQ 0.41%. New home sales for March came in weaker than expected, at 481,000 in March, versus the 510,000 unit estimate. Overseas, China’s flash purchasing managers index from HSBC Holdings dropped to 49.2 for April, the lowest since April last year, underscoring a slowdown that prompted China’s central bank to cut banks’ reserve requirements by the most since 2008. Any reading below 50 signifies contraction.

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