Friday, January 04, 2019

Market Alert - Last Hour

After declaring the relief bounce over, stocks post an even stronger upside day on trade hopes followed by a Fed chairman that tap danced quite well for the markets after a quite strong jobs report.

Looking especially solid are SP400 and RUTX. NASDAQ is not bad either. They are surging past the prior bounce highs.

SP500 78.16, 3.20%
NASDAQ 255.90, 3.96%
DJ30 705.73, 3.11%
SP400 3.14%
RUTX 3.54%
SOX 4.17%
NASD 100 4.17%

That said, we are not that excited about moving in on a Friday that is surging after sessions that showed ugly action. A repudiation of a break lower is a good indication more upside is to come, but with this back and forth market, we are inclined to see if stocks such as GOOG, NFLX (gapped over the 50 day MA on an upgrade), SPLK and others remain in good shape to start next week. What is the old adage? Buy on Monday, sell on Friday. In other words, it is easy to get sucked into moves on Friday just to see some weakness to start the next week.

Today trade looks great as China and the US announced they are going to do what they announced 3 weeks ago. If that is great . . . Also, Powell talked in a dovish enough tone for the market that was already feeling good. Nothing like a warmed up crowd for a comedian.

For the bigger picture, a good move upside to continue the relief move that rejects the attempted rollover. From despair to ebullience in less than 24 hours. That works in a bear market bounce and we will let our positions move higher; even took some gain on AMZN. Then we see if they show stamina Monday to perhaps pick up some more plays for another leg higher in the relief move. FFIV, QID, LULU (downside plays) are struggling hard of course, but not going to bale today on a one-sided tape; will see if Monday does at least bring some softness before continuing the move.

Jon Johnson, Chief Market Strategist

Alert Key


Customer Support:

No comments: