Reports of China offering a 6-year plan to balance the trade imbalance (by importing tons of US goods) helped lift stocks today. Doesn't hurt that the WHouse is test floating a plan for massive infrastructure rebuilding over the next 10+ years. Look, up in the sky it's . . . more stimulus.
Over the past 3 hours, however, it looks as if the market has gorged on about all the good news it can before a 3-day weekend. The indices rallied to midday and have since idled sideways to slightly off the highs. Not bad action, and the last half hour could see a modest rise -- or more flat line/slight fade.
Many stocks of course jumped, a number have backed off some, and we may use that to pick up some positions even if it is Friday ahead of a 3-day weekend. Others have slipped back below our buy point, and we kind of like that because we can move in next week when they start back up.
Some big names in NASDAQ were up nicely but now are just trying to hold positive, e.g. AMZN (1716 on the high, now 1696).
The indices are doing what they need to do, i.e. push farther over the resistance. A good run up through resistance is more capable of turning that resistance to support on any test.
We are interested in EA, LRCX, UCTT as they are holding up well. Others are very intriguing, but as noted, several have slipped back below the buy point so we don't feel compelled to act on them today.
SP500 31.31, 1.19%
NASDAQ 63.71, 0.90%
DJ30 302.78, 1.26%
SP400 1.26%
RUTX 0.92%
SOX 2.19%
NASD 100 0.88%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
Alert Key
http://www.investmenthouse.com/alertkey.htm
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment