The market was solid today; thanks to a favorable GDP report and declining oil prices. Commodities and energy plays, including the solars, were weak. Techs were strong, as QQQQ (the Qs) went back to nearly $50. Financials also showed strength today, helped partially by MA, which reaffirmed revenue guidance. MA jumped $22.11, or up +7.71%, and set a new all-time high at $316.96! V also traded up more than +4%.
The Dow was up +52.19 points; SPX added +7.42 points; and Nasdaq gained +21.62 points:
VIX dropped below 18 intraday and closed just above. XLF (financials) jumped +1.79%. BTK (biotechs) was very strong, adding +2.87%. Commodities-related sectors were weak: USO (oil) -3.46%; UNG (natural gas) -4.77%; OIH (oil services) -2.56%; XME (metals and mining) -3.95%; GLD (gold) -2.95%; SLV (silver) -4.56%. FXI (Chinese ADRs) advanced +1.4%.
SPX
SPX added +7.42 points to close at 1398.26. It went above its daily MAs intraday and closed just at its 30-day MA. Its MACD flattened.
Nasdaq
Nasdaq gained +21.62 points to close at 2508.32. It closed above its daily MAs and the MACD went higher.
Well, it looks like the market is cashing out on commodities and rolling money into techs. Biotechs were especially strong! VIX went below 18 intraday and closed just above. Going below 18 again would likely extend VIX’s downward trend. Nasdaq is almost catching its daily upper BB again. The Qs is pretty much there. USO looks like it’s ready to cool off.
After the market, DELL beat the estimates with its quarterly report and saw its shares trading up almost +10%! Likewise, MRVL reported blowout earnings with strong-than-expected sales. Its shares were up +15.77% in AH. As mentioned earlier, biotechs were extremely strong today, ahead of the ASCO meeting this weekend. IBB (top 10 holdings) and XBI (top 10 holdings) both had healthy gains, up +2.14% and +3.42%, respectively. Among the top 10 holdings of these 2 ETFs: DNA was up +4.33%; GILD added +3.32% and set a new all-time high at $55.5; CPHD jumped +7.48%.
Good night and HappyTrading! ™
