While the market is down for the week it is now flat with the gap down open Monday morning. Considering the news backdrop (we were down this morning premarket) that's a big win for bulls. Even the QQQs have a chance for a 15th (!!) consecutive up week, if things continue. Friday's lows were near 1393 which would "fill the gap" to the upside.
Yesterday's action was not that surprising – today's much more. Especially with the action premarket. Thought if we drifted back up it would take until early next week to reach these levels, but not in the bipolar "student body left" market.
Apparently, Monday and Tuesday were like a Bobby Ewing dream – they didn't happen.
Tractor Supply (TSCO) is one of those names which is under the radar but having a very good year. This is a play on the agricultural side of things and unlike a company like Deere (DE) which has struggled since January, IT IS *not* a global play – which in the current market, has been an advantage.
Tractor Supply Company operates retail farm and ranch stores in the United States. Its stores offer a selection of merchandise, including equine, pet, and animal products, such as items required for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, including lawn and garden items, power equipment, gifts, and toys; maintenance products for agricultural and rural use; and work/recreational clothing and footwear. The company operates its retail stores under the Tractor Supply Company and Del?s Farm Supply names, as well as a Website under the TractorSupply.com name. As of December 31, 2011, it operated 1,085 retail farm and ranch stores in 44 states. …
After falling to negative in premarket on weekly claims, the market is now up sharply with a lot of the pro cyclical stocks leading the charge (metals and global companies). Those were the hardest hit of late. While I was expecting dovish commentary out of lieutenant #1 Yellen last nite, it instead was some dovish commentary by lieutenant #2 NY Fed Prez Dudley which seems to be stoking markets. (Along with hopes of good Chinese GDP tonight) Nothing direct mind you, but the market is "reading between the lines" here on bearish commentary on the economy from the all important NY Fed head (this is where Geithner was once stationed). Again it stinks that this entire market now is predicated on reading tea leaves from Fed officials, but this is what we're stuck with in a market drunk on liquidity injections.
The spasm upward we just had this morning now has the S&P 500 within sniffing distance of that long term trend line I mentioned this morning
As the unofficial mouthpiece of the Fed, the Wall Street Journal's Jon Hilsenrath is must read theater. After Yellen's speech last night he says:
Against that backdrop, officials seem unlikely to want to veer from the low-rates-to-2014 forecast that the central bank has been making since January. At the same time, it appears unlikely that the Fed is anywhere near being prepared to launch additional easing efforts.
(note: facetious financial website hyperbole intended)
Yesterday began the "obvious" oversold bounce. By obvious I simply mean it was due after a pretty hectic selloff, but with the poor close Tuesday it was not necessarily obvious that it would begin in the overnight futures session. A negative open yesterday would have created a low risk 'trade' – unfortunately the market did not give that opportunity. This morning futures continue the bounce. …