Bulls Must Push DJIA Above 17,900

Investor’s first readDaily edge before the open

DJIA: 17,749                                    

S&P 500: 2,053

Nasdaq  Comp.:4,871

Russell 2000:    1,232

Monday,  March 16, 2015      9:11a.m.

     The stock market rebounded sharply from my support in the DJIA 17,620 (S&P 500: 2,040) area Friday as it also did Thursday, but the follow through was limited. While the Russell 2000 was down for the day, it performed better than the DJIA, S&P 500 and Nasdaq Comp.

     The Street  continues to be haunted by the prospect of a Fed decision to raise interest rates from its benchmark rate which has been held at close to zero since 2008.

     The FOMC meets Tuesday with a Fed Chair Yellen press conference at 2:30 Wednesday. The Street will parse every word of Yellen’s comments for clues  to the timing of the Fed’s first increase in its benchmark “funds” interest rate.

     Today’s economic reports include Empire State Mfg. (8:30), Industrial Prod, (9:15), Housing Market (10:00). The Street would welcome soft numbers, reasoning weakness in the economy, rather than strength, would delay a fed decision to raise rates, i.e., bad is good.

     The Street simply cannot wean itself from the Fed teet.  Bad wasn’t so good back in 2008.

     It is what it is, folks – boneheaded – logical or illogical, it has to be dealt with.

     While the market will take a hit on the first concrete news that the Fed will raise rates, investors should be prepared for a surge in stock prices following a sharp, but brief, plunge on the news. That would be what is least expected.

     Quadruple Witching Friday looms bringing the potential for increased volatility. On the 3rd Friday of March, June, September and December index futures, index options, stock options, and stock futures expire.

TODAY:  The bulls must push the DJIA across 17,900 (S&P 500: 2,068) to rebalance the market in favor of the bulls. Actually the DJIA will begin to encounter resistance at 17,876 (S&P 500: 2,066). Near-term support is DJIA 17,690 (S&P 500: 2,046).

   A rally failure early this week raises odd of a spike down to DJIA: 17,454 (S&P 500: 2,026), which could set up a buying juncture.

George Brooks

Investor’s first read

A Game-On Analysis, LLC publication

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Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

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Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

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