Wednesday’s recap: What a mad dash to finish …. Stocks surged in the last hour before closing, lifting all three major indices from deep red to green.
The last-hour surge pushed the Dow up 109 or 1.4% to 8030. The S& P 500 index rose 10.6 points or 1.3% to 852, and the Nasdaq snuck in to green with a final minute thrust and edged up 1.08, or 0.1% to 1627. Crude 16 cents to settle at $49.25 a barrel, while gold was down $1.50 to $893.50 an ounce.
The impetus for the final hour turn around was provided by the observation in Federal Beige Book that economic contraction may be slowing down. The market interpreted this as ‘the end is closer’ ….
TaurusTrader portfolio had a decent day. AMR was one of the stars in today’s rally, hit it’s first target of $4.85 for a profit of 31.1%. 50% position in AMR was closed today. For the remaining 50%, the second target is $6.50. XRT was stopped @ $24.60 (stop moved up once), but still made over 1% profit. AGU again came very close to hitting the profit target for the second day in a row. FCN, HON, and EXP had decent gains.
Picks for Thursday, April 16: An increasing stream of quarterly results from companies is likely to add to the market’s volatility. Reports from JPM andGOOG on Thursday could reshape how investors feel about the financial and technology industries. Figures are also due on home construction and unemployment claims.
I’ll wait for reports from JPM and GOOG before committing fresh money on new picks. However, if JPM reports a great quarter, and the market responds positively, I would buy FAS (Financial 3X long ETF) at around $9.50, and hope to ride the momentum till it hits $11.60.
I’ll also have following stocks on my radar for any swing trading opportunities: WFC, MS, MELI, IPI, HP, TCK, and BX