The market appeared to be headed for another gain Monday before
lunchtime hit and forced the market to digest. Stocks faded for the
most of the afternoon, and major US indices finished just below the
flat line, largely unchanged. In 2013, flat is the new down. A
confluence of factors -- low interest rates, QE, and a growing
(albeit slowly) economy, among others -- have pushed the stock
market to historic highs, and there are no signs that is set to
change anytime soon.
The Federal Reserve will once again be in focus this week as
Chairman Ben Bernanke will testify in front of Congress starting
Wednesday. The Fed's QE program divides opinion, but has
undoubtedly left investors chasing yield in the form of equities,
likely one of the central bank's secondary goals with its easing
While the market was quiet today, we continue to have tremendous
rotation through sectors. The solar sector continued on its warpath
today following strong earnings from
), which finished the day up 70.41%. Big solar players
) surged in sympathy with JASO earnings, gaining 9.82% and 7.74%,
respectively. The Elon Musk effect also remains in full effect as
the solar company he chairs,
), finished the day up 14.67% despite closing off its highs.
The precious metals,silver (NYSEARCA:SLV) in particular, have also
had an eventful 24 hours. Silver futures were down several
percentage points last night after opening for trading, but were
able to pare losses into today's open and then push higher during
today's session. SLV finished the day up 4.11%, staging a very
impressive comeback. The swings in gold (NYSEARCA:GLD) were not as
extreme, but the ETF went from opening flat to finishing up 3.12%.
Perhaps the metals are anticipating dovish comments from Fed Chair
Bernanke this week in his Congressional testimony, after a
multi-week period of talk about QE "tapering."
Among the set-ups mentioned in
today's Morning Call
) made a very impressive move, finishing the day up 6.09%. We
continue to see money rotate into lower quality stocks, with
today's example being
(MCP), which is part of the once hyped, but now forgotten, rare
earth sector. MCP finished the day up 10.74%.