Wednesday’s Recap: It was a “Maalox moment” day of trading for both bears and bulls. Responding to a series of better than expected economic data, stocks rose, rose big, in the morning session with dow gaining over 200 points. Then came news from London that one of the govt backed treasury auctions failed there, and from Chicago bond market that there was less than enthusiastic bidding for long term treasury notes. Markets started heading south, with Dow dropping triple digits in the afternoon session. Then, the ‘reversal of fortune’ occurred in the last hour before closing with Dow erasing all losses and went up by triple digits, finally closing with a gain of 90 points. That’s about 350 points ‘up-down-up” swing in a day!
The Dow rose 90 points, or 1.2%, to 7750, and the S&P 500 tacked on 7.6 points or 1%, to 814. The Nasdaq added 12.4 points or 0.8%, to 1529. Crude Oil fell $2.05 to settle at $52.77 a barrel following the release of EIA inventory report which indicated a record inventory buildup in 16 years. However, Gold went up $9.80 to $935.80 an ounce.
TaurusTrader’s swing portfolio as well as day trade picks saw a great day.
In the swing portfolio, yesterday’s pick MELI exploded with 13.4% gain. TCK went up by over 9%. All 12 swing picks gained on the day.
It was a fantastic day for day trading. I had multiple opportunities to trade for 3 to 5% profit with picks – FAS, BAC, and MS. As discussed before, I use 10-min chart to determine entry and exit points.
Focus list for Thursday, March 26: The fourth quarter GDP reading is due in the morning prior to market open, as well as weekly jobless claims. Following today’s experience, traders will be closely watching bonds market and auction of treasuries tomorrow. On the earnings front, BBY, CAG, and GME report before the opening bell which may have impact on retailer, gaming, and food processing sectors in general.
I’m not planning on adding any more new positions tomorrow. I will trade with caution and monitor my long positions closely. I’m raising “stop limit” on following positions to safe guard accrued profit or to reduce losses.
- TCK – New stop $5.56 (old stop – $3.75)
- MBT – Stop raised to $29.45 (old stop $24.30)
- MDR – New stop $13.56 (old stop $12.90). Upped twice.
- BAC – Stop raised to $6.90 (old stop 5.90)
I expect the financial, technology, retail, and small cap stocks to trade in a wide range on Thursday. I’ll be concentrating on following stocks for quick day trade opportunities: FAS, MS, TNA, WDC, and GME. GME is an earning’s play.
If there are questions or comments, please do post …
Happy trading ….