Yesterday's huge pullback makes it hard to decide the direction of the market today. It may go sideway, down or even up.
Hypothesis:
Hard to decide the direction to trade.
Results:
Jaguar took a rest and just watched the market.
The Market went up sharply all the day with one trend.
Improvements:
Take a rest is a good decision! However, when the market goes up steadly in the noon and breakup in the aftenoon, Jaguar should take a chance to follow the market. Both MS and LEH have +14% gains.
Next Monday's Preys:
Market Comments:
16:20 ET
Financials Lead Market Sharply Higher
Dow +261.66 at 12361.32, Nasdaq +48.15 at 2258.11, S&P +31.09 at 1329.51
[BRIEFING.COM] On Thursday, the stock market closed the shortened week on a high note. The major indices surged more than 2% in heavy trading, and finished near their best levels of the session. Financials led the way higher, thanks to a pair of upgrades and news that the Fed is expanding its previously announced plan to increase liquidity.
The financial sector (+6.9%) was the driving force behind this session’s strength. It got off to a strong start after Fannie Mae (FNM 34.30, +3.59) and Freddie Mac (FRE 32.58, +2.68) were upgraded to Outperform from Market Perform at Keefe, Bruyette & Woods.
Financials, and the market, got a further boost after the New York Fed announced modifications to its new Term Securities Lending Facility (TSFL). The TSFL auctions will now allow schedule 2 collateral, instead of the schedule 1 collateral previously proposed. Schedule 2 collateral will now include collateralized mortgage obligations (CMOs) and AAA rated commercial mortgage-backed securities
In other words, the Fed will be lending banks highly liquid Treasury securities in exchange for less liquid assets. Banks will now be able to use a wider range of collateral than previously announced. The first auction will take place on March 27 with an offering size of $75 billion for a term of 28 days. Up to $200 billion in loans have been authorized. This is a positive development as it temporarily relieves holders of the difficult to trade securities.
The thrifts & mortgages group (+10.3%) was a standout for the third day in a row. The group has spiked 53% from its low on Monday. Investment banks & brokerages was also a leader with a 11.2% gain.
The March Philadelphia Fed, a regional manufacturing survey, also gave stocks a boost. The survey came in at -17.4, which is higher than the previous reading of -24.0. Economists expected a reading of -18.0. The stock market spiked on the release even though the number was only slightly better than expected. Since the reading is below zero, it reflects contraction in manufacturing in the Philadelphia region. The survey has shown contraction for the last four months.
Other economic data were bearish, although the market shrugged off the news. Jobless claims for the week ended March 15 rose to 378,000 from the prior reading of 356,000. Economists expected 360,000 claims.
In a separate report, February leading indicators fell 0.3%, which was in-line with expectations. The prior reading, however, was revised lower to -0.4% from -0.1%.
Also of note, General Electric (GE 37.49, +1.90) posted a healthy 5.3% gain after being upgraded to Buy from Sell at Merrill Lynch.
Nine of the ten sectors trended higher. Consumer discretionary (+3.2%) was the second best performing group behind financials, thanks to a 4.9% surge in retailers. Materials (-0.5%) was the only sector to finish in the red, as the Commodity Index (-1.7%) has slid four of the last five days.
The strengthening dollar (+0.84%) weighed on commodities, with oil sliding -1.0% to $101.54 per barrel, and gold giving up 3.5% to $912.22 per ounce. Gold is down 11.8% from its all-time non inflation adjusted high of $1033.90 per ounce that was reached on Monday.
For the week the S&P advanced 3.2%, the Dow gained 2.2% and the Nasdaq advanced 2.1%. The CRB Commodity Index slipped 8.3%, while the dollar gained 1.5%.
The stock and bond markets will be closed tomorrow in observance of Good Friday. Trading will resume on Monday.
..Nasdaq 100 +2.1%. ..S&P Midcap 400 +2.4%. ..Russell 2000 +2.6%.
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