GDP readings came in higher than expected and Weekly Jobless Claims came in lower than expected, which has pre-market Futures up slightly. Bulls are enjoying the two days of stronger than expected economic reports, but the readings are coming at the cost of Oil. The Hurricane and the stronger than expected economy are boosting Oil prices towards the $120's again. Gas prices were just starting to alleviate at the pump and that relief may be short-lived if Oil takes off again.
The market is set for a bullish open, and some carry-through from yesterday. As is the norm this year, I want to take advantage of it, but also be smart and not take big positions yet. I also want to be ready to lock in some of my profits earlier rather than later. The tone is positive early today, and as long as Oil prices don't run away from us, it could finish that way as well.
Market Wrap: GDP brought out the Bulls today and the major indexes carried through on the bounce from yesterday. A drop in oil prices added to the buying strength. Financials, Cyclicals, Retail, Leisure, and Transportation (including Railroads) were the biggest movers today.
Here are some interesting Bullish Movers:
Retail: TIF, SHLD, RL, BBY (I like those four the best), and also JCP, KSS, AMZN
Financials: PRU, NTRS (I like those two the best), and also HIG, JPM, MS, STI, MCO
Transportation: FDX (The Railroads are bullish too, but BNI, UNP, and NSC are probably just about done on the short term upswing)
Note: DELL missed earnings and is down sharply after-hours. Oil futures are trading back up a dollar or so. The net result may be a gap down on the Naz and maybe the overall market in the morning. If the market does gap down a bit in the morning, it will be important for the Naz to hold the 2,390 area at worst. It will also be important for the SPX to hold 1,290 and at worst 1,285, and for the Dow to hold 11,600 – 11,630 and at worst 11,550. If the indexes go much below those battle zones there may be too much chart destruction and the current upswing would then probably be over. It is important to see how much the market drops early in the day (if it does), and if the market holds up mid-day. If the market does hold up and rally, then the current upswing could finish out on Tuesday or Wednesday after the Labor Day Weekend. I’m not interested in holding very much over the weekend unless we see a strong close on the markets tomorrow.
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Gang,
ReplyDeleteGot out of all my energy call positions with small losses. I took profits on AZO at 139.50 to offset some of the losses on the energy plays.
The rest of my plays are at break-even so I will let them go a little bit to see what happens.
Chic
Gary,
ReplyDeleteYou've got to be a happy camper with your NIHD calls!
When I saw my energy calls falling apart, I jumped on some coal puts on MEE.
ReplyDeleteI have now paid all my losses on the energy calls this morning with AZO and MEE. Whew.
Also took some BNI calls on bounce this morning. I am exiting 3/4 of position right now.
Chic
Laurie,
ReplyDeleteI sold them into the run up first thing this morn. Thanks!!
Dwight,
ReplyDeleteThanks for the coaching on NSC you were right on target.I did sell a little early when I saw it stall for awhile but profit is profit. I took ADSK when it broke 37 on the 5's and will probably look to lock some or all down before the weekend. My USO call took a beating, but oil is up today. Are you holding into this weekend.