I’m bullish over 5100. It’s a reset for the longs to add. (CTA’s, Program traders, algorithms, etc).
Dow +263.71 at 38503.69, Nasdaq +245.33 at 15696.64, S&P +59.95 at 5070.55
The stock market started on a higher note today and never really looked back, enjoying a session that saw very little selling interest at the index level. The major indices closed near their best levels of the day.
Today’s positive turn was driven by favorable responses to earnings results, lower market rates, and broad-based buying interest that featured the outperformance of the small-cap stocks and the mega-cap stocks. The Russell 2000 jumped 1.8%
The early bid in stocks got some backing when the 2-yr note yield backed away from 5.00%, catalyzed by some preliminary manufacturing PMI and services PMI data for April reported by S&P Global. Both reports registered softer readings (this is bullish because data has been hot). But it’s only one data point. We are “data dependent”.
Breadth was strong with winners beating losers on the NYSE by nearly 5-to-1. Advancers beat decliners on the Nasdaq by nearly 3-to-1.
The most challenging aspect of the market now is avoiding the pitfall of buying stocks acting well in a weak market. It’s still early in the rally attempt as the Nasdaq and S&P 500 trade below their 50-day lines. But a follow-through day for the Nasdaq and S&P could come as early as Thursday. Watching. If they break higher we get longer.
If EQH doesn’t trigger tomorrow it’s off the list because earnings are next week.
LPG, RSG, and GCT triggered today. The action is still just “OK”. Volume is light so we can get a reversal at any point. GCT has big intraday moves in case you haven’t noticed.
I’m seeing so many charts I love but I hate getting too committed during earnings season, and it’s also a big economic data week as well.
Let’s chill and watch 5100 SPX. The P&L is updated.
Even Pacman is living on the street in San Francisco
Steve Cohen is right up there with the best hedge from managers on the planet.
They call this passion.
