Today was another mindless, non-directional day with the markets not really making any head way. However, the internals were the best in days with volume 2.5:1 up and the advance decline line 18:11. Both are better than many of the days with much bigger gains. Earnings are still split between “okay” and “not great.”
The correlation between the Oil and stocks was evident right from the start and while we really didn’t get very far, we were ahead all day and stocks improved with the oil gains. Unfortunately, the Transports could manage a very short range “inside” day without much oomph…The airlines too were barely up and also had inside days that covered less than a third of their losses from yesterday.
As mentioned yesterday, the IBB (NASDAQ BIOTECH EFT) managed another small gain but also remains above their breakout over the 200 day Moving average. Both of the names mentioned here yesterday, PRGO and GILD has up days again with PRGO moving higher by $2.70 or almost 3%. The only problem I see with GILD is that they have a war chest of almost $25 Billion and needs to do a deal of some sort. The downside of that is unless it does what the street considers a good deal the acquirer doesn’t get the boost that the acquired gets.
The gold also made a two day high around 1370, lower than the previously made highs around 1380 the beginning of last month and may be a little tired. Any move back to 1330 or so would clearly get us back on the long side. CAM
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