The rotation of money into the beaten up biotech sector was in full force yesterday and if you watched last weeks market wrap video or the stocks to watch video from Sunday you were ahead of the game with your planning. However, now we are approaching a logical area for potential resistance. We closed right at some potential price resistance yesterday so we could see some consolidation in this area before making a move to test the 300 dolla holla.
Our focus can now turn to earnings which kick off next week with Alcoa (AA). The street is expecting another weak quarter of earnings and more signs that show we are actually in an earnings recession.
Gold miners and ETF's are looking like they are coiling up for a potentially significant move in the near future GDX, GDXJ and JNUG all have nice pennants forming on the daily charts. Keep an eye on dollar strength, it looks like the UUP could be looking to take out some key price support and if it does that would likely be good for gold and the miners. Mario Draghi speaks today @ 8:30 ET and that could impact the dollar.
The home builder space continues to look strong as it consolidates just below the 200 day moving average. As long as the Fed keeps rates low that space could stay hot as we head into the spring selling season.
After yesterday move in the markets it wouldn't be a shocker if we had a bit of a pullback today. I saw an interesting stat on CNBC last night that short interests is the highest percentage it has been of the SPY since 2008. This could be a contrarian catalyst that actually sends the market to new highs with some type of capitulation parabolic move. This rally that we have had over the last 5 weeks caught a lot of people off guard and they were unable to participate. That has created a whole host of people that are salivating over the chance to short this overbought rally providing the markets with the very fuel it needs to make some sort of parabolic move.
I am not saying that this is guaranteed to happen > I am just suggesting that the possibility exists.
Janet Yellen Paul Volker, Ben bernake and Paul Volker are all going to be at an event tonight and that could wind up giving us some interesting headlines for tomorrow.
Today's Markets
In Asia, Japan +0.2% to 15750. Hong Kong +0.3% to 20266. China -1.4% to 3008. India-0.9% to 24685.
In Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.4%. S&P -0.5%. Nasdaq -0.5%. Crude -0.1% to $37.70. Gold+1.1% to $1236.80.
Ten-year Treasury Yield -2 bps to 1.73%
In Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.4%. S&P -0.5%. Nasdaq -0.5%. Crude -0.1% to $37.70. Gold+1.1% to $1236.80.
Ten-year Treasury Yield -2 bps to 1.73%
Today's Economic Calendar
Chain Store Sales
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
3:00 PM Consumer Credit
4:30 Money Supply
4:30 Fed Balance Sheet
5:30 PM Janet Yellen in conversation with former Fed Chairs
8:15 PM Fed's George: Economic Outlook
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
3:00 PM Consumer Credit
4:30 Money Supply
4:30 Fed Balance Sheet
5:30 PM Janet Yellen in conversation with former Fed Chairs
8:15 PM Fed's George: Economic Outlook
ETF's on my Radar
Volatility & SPY OIL Biotech
UVXY XIV VXX TVIX SPXS SPXL UWTI DWTI GUSH DRIP LABD IBB LABU
UVXY XIV VXX TVIX SPXS SPXL UWTI DWTI GUSH DRIP LABD IBB LABU
Gold SILVER Dollar Financials
GLD NUGT JNUG USLV UUP FAS XLF FAZ
Minerals and Miners Utilities RETAIL Transportation
XME GDX GDXJ XLU XRT IYT XTN
DUST JDST
Stock on my Radar Premarket
*pr = Press Release
S thick stock Pr after the close >Daily chart looks pretty hot don't chase it more of a swing type
MDT pr after the close has been consolidating on the daily potentially a big flat top breakout candidate and could take out all time highs more of a swing type THICK STOCK
TROV pr potential follow through Thin stock
KEYW Potential continuation and 7 roll off pr Earnings and guidance
WTW pr nice looking daily has squeeze potential MPEL potential bounce spot sympathy play to WYNN
Stocks on this weeks watch list and how they are tracking
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