This morning, a stronger-than-expected Chicago PMI prompted stocks to jump at the open. Although they plateaued after the morning jump, stocks were able to keep most of their gains. Industrials and energies continued to bounce: CAT +3%, JOYG +5.69%, NOV +3.18%, IOC +4.58%. Solar stocks were really strong. FSLR jumped almost $13 in the morning, trading as high as $142.22, on the news of qualifying for a $4.5 billion federal loan. FSLR ended only up $2.85, or +2.2%. (This could be an opportunity if you have missed the 3-day jump. See Tuesday’s article.) Other solar stocks followed: SPWRA +5.51%, TSL +3.56%, STP +1.94%. Fertilizer stocks fell today as corn prices dropped: CF -5.14%, AGU -0.51%, MOS -0.99%.
The Dow was up +152.92 points; SPX added +13.23 points; Nasdaq gained +33.03 points:
XLE (energy) was up +1.48%, while OIH (oil services) gained +1.77%. XME (metals and mining) added +1.67%. SOXX (semiconductors) climbed +2.54%. GLD (gold) and SLV (silver) both pulled back.
SPX added +13.23 points to close at 1320.64, just above 1320. Its 10-day MA has risen above the 20-day MA. MACD went higher.
Nasdaq gained +33.03 points to close at 2773.52, above 2750. Its 30-day MA flattened and the MACD was up.
Nasdaq closed above its resistance at 2750, while SPX is testing its resistance at 1320. VIX has fallen back below 18, closing at 16.52 today. This rally since Monday, triggered by the latest plans to deal with Greek debt problems, has been very powerful and without much of a respite. Tomorrow, we’ll get the latest ISM. I suspect that since its Friday, even if ISM comes in strong and positive, we’ll see some profit-taking. We’ll likely take things easy tomorrow ahead of the long weekend (July 4 Independence Day is on Monday). It’s been quite a week, with Bagger Vance on vacation and still taking profits. Here are the trades we’ve closed so far this week, 100% GR$$N:
- June 30, 2011
- June 29, 2011
- June 28, 2011
- June 27, 2011
Good night and HappyTrading! ™