The market opened lower today as the number of jobless claims increased in the latest data. However, in the afternoon, the market started to reverse its direction. Fertilizers were among the first ones to be bought. CF, in particular, bounced on heavy buy volume after opening below $100/share; it ended up $4.60, or +4.56%, to close at $105.39! POT, MOS, AGU also ended in the green, up +2.65%, +1.56%, +2.55%, respectively, after opening lower in the morning.
CME continued its climb today on an upgrade to "buy". CME was up $14 yesterday and added $4.87, or +1.68% today. ICE was up slightly today.
Yesterday, ESRX reported a strong quarter last night. Its shares jumped +8.52% today. This morning, KSS delivered a solid quarterly report, sending its stock up +4.83%. After the market, DECK hopped more than $10/share with a +67% increase in its quarterly profits! This is after already gaining $4.13 in the regular session.
The Dow was down 53.13 points; SPX slid 2.3 points; Nasdaq slipped 1.68 points:
Mining stocks bounced back nicely today: XME (metals and mining) +1.56% and GDX (gold miners) +2.84%. GLD (gold Nad SLV (silver) both closed in the green. USO (oil) was down 2.26% while UNG (natural gas) sank 1.92%. FXI (Chinese ADRs) lost 0.84%.
SPX
SPX slid 2.3 points to close at 1102.94. It closed above its daily MAs. The MACD was up.
Nasdaq
Nasdaq slipped 1.68 points to close at 2234.22. Its 10-day MA went above its 30-day MA. The MACD rose slightly.
Both Nasdaq and SPX closed back above their respectively daily MAs, after opening much lower. SPX tested its 20-day MA (see Tuesday’s discussion). VIX dropped back to just above 20. The market rested in a neutral position ahead of tomorrow’s GDP report. It is unclear what drove the mid-day buying. The latest economic data have not been very positive. But, for sectors like the fertilizers, it looks like a technical buy, as the lower opening took these stocks to their support levels. In the Trading Room this morning, I mentioned
February 25, 2010 7:21 AM
CF
buyers came in below $100
CF kept climbing and never looked back today. As mentioned above, SPX found support at the 20-day MA. Perhaps the bounce was buying programs that kicked in when the support levels across the board were hit.
The GDP report tomorrow could surely be a market mover, and we shall see if the mid-day buying today was indeed the "smart money" positioning ahead of a bigger move. A really good GDP report may not necessarily rally the market, as the dollar would probably move higher and exert pressure on the commodity stocks. A bad GDP report would not be good either, as the market is vulnerable right now. An "in-line", so-so, report may actually help the market, as it would validate a recovery and still keep the dollar in check.
Good night and HappyTrading! ™
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