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Getting Over the Hump

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Hey everybody, Dave Bartosiak filling in for Jim Giaquinto today. He'll be back with you folks again tomorrow.

Are you starting to feel better about the market right now? Technically speaking, it's looking better but just like I said yesterday, still not out of the woods yet. However, it does seem like the normalization is happening. We're getting the VIX to settle down as the market is surging higher. Still that next technical hurdle lies ahead of us. That's the 50-day moving average on the S&P 500 now at 2,721. Perhaps that's close enough for a standoff during tomorrow's session.

Green all over as the major market averages all pushed higher. The S&P 500 finished the day higher by 35.69 or 1.34% at 2,698.63. The Dow added 253.04 or 1.03% at 24,893.49. The NASDAQ rallied 130.10 or 1.85% at 7,143.61. The small caps of the Russell 2000 got in on the action too, rallying 27.14 points or 1.8% at 1,522.09.

Today's Intraday Trades:

I was busy in both Surprise Trader and Momentum Trader swapping out a few lagging performers in Eldorado in Momentum and Dana in Surprise Trader. I used the new money to get into a few new ideas including Zacks Rank #1 (Strong Buy) Paycom.

Aside from that, Tracey took a victory lap with Helmerich & Payne. She rang the register for a huge 33% gain in Insider Trader today. That was just the tip of the iceberg as she added 4 positions toincluding Tiffany, WR Grace, Beazer Homes and Southwest Airlines.

"What we have here is a bunch of directors buying, plus a confidence buy by a CEO and a CFO.

It may not seem like a big deal when directors buy. But they usually get compensated by awards and gift shares so they almost always have plenty of company shares.

Why would they buy more?

If they think the shares are undervalued, they'll buy more. Remember, they are greedy. And they KNOW what is happening at the company.

All of these buys are strong ones. I'm expecting to see more of this throughout this week. We'll be buying again soon."

Counterstrike: Jeremy gave us some Fib targets he's looking at in the S&P 500 right now. He also details short term price action in the VIX he used to gauge the move the market today.

"While the bond market was confusing, stocks and the VIX showed us a price action that was overwhelmingly positive. If this action continues into Friday we can confirm that the 200-day test was the bottom. Over 2745 in the S&P and we can put our bull hats on again with Fib targets of 3095 in the S&P.

Let's take a look at the chart today and the bounce back move after the CPI report. The big red bar on the left is the algos at work off the CPI headline. You can see the steady grind higher the rest of the day. Very strong price action and polar opposite of what we saw last week."

Large Cap Trader: If you were looking for more insights into the CPI, the good Doctor John Blank has got you covered.

"This was the highest headline CPI print in five years.

Does this concern me? No, actually. Add me to the pundits who write to you. This was NOT a report to be feared.

Why?

This version of the headline CPI reading includes the rise in WTI oil prices . It makes its way into the gasoline-at-the-pump prices in the broad CPI. Since North American oil production is rising smartly, the WTI benchmark price is now off from $65 a barrel (reflected in this CPI data) to around $59 a barrel.

I think shorts and speculative market makers were just looking for data to confirm their trade positions. "

That's all I've got for you folks today. Jimmy G will be back to hold it down for you tomorrow.

Have a great night,

Dave

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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