On the last trading day of 2nd quarter, the market displayed little strength. It attempted to bounce all day, but, ended with sharp drops in the tech stocks. On the other hand, the energy sector (XLE) was strong and led the market. Metals and mining (XME) and oil services (OIH), which we talked about in our Sector Watch this weekend, also saw select buying.
CLF recorded a new all-time high today at nearly $122, jumping more than $10 intraday, as its target was raised to $150! Some analysts also released comments saying that steel prices have more room to climb. RTP shares jumped more than +8%, or $37.31 on rumors that MT may also be interested in owning a stake in the company. BTU broke out today to set a new all-time high at $88.69.
In the energy sector, most of XLE’s CVX+COP+DVN+XOM+HAL+HES+OXY+SLB+RIG">top holdings did well, among which DVN jumped +4.6% (we have a position in this), and COP gained +3%. We have been talking about ATW for a while now. It made yet again a new all-time high today, at $125.89!
Biotechs made a small bounce today. DNA hopped +4.37% on favorable analyst comments. DNA looks like it’s setting up for a breakout. AMGN also added +1.7%.
The Dow was up +3.5 points; SPX added +1.62 points; Nasdaq lost 22.65 points:
VIX added +2.18% and closed just under 24. INX2 (Internet) was down 1.04%. XLF (housing) lost 1.51% while HGX (housing) gave up 2.11%. GLD (gold) was flat. As mentioned earlier, XLE led the market, advancing +1.41%. FXI (Chinese ADRs) gained +6%.
SPX
SPX added +1.62 points to close at 1280. Its daily MAs and MACD continued lower.
Nasdaq
Nasdaq lost 22.65 points to close at 2292.98. It closed below the 2300 level. Its daily MAs and MACD curved lower.
The overall market is still shaky, although SPX and the Dow managed to close in the green. The financials are still weak. Nasdaq experienced a sharp drop near the end of the day to close under 2300; its next support level is at 2250. VIX went higher. These signals do not make me feel comfortable. Coals, steels, and oil services continue to be the stronger sectors. I think it’s still safer to hold on to cash until we get a clearer picture.
Good night and HappyTrading! ™
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