Bulls Need Follow Through Today

Investor’s first read Daily edge before the open

DJIA: 17,977                                    
S&P 500: 2,081
Nasdaq  Comp.:4,929
Russell 2000:    1,239

Tuesday,  March 17, 2015 

 

    Wall Street celebrated news yesterday of slumps in three areas of the economy with a resounding rally. Industrial Production  was down for the third straight month, New York area manufacturing took another hit and U.S. homebuilder confidence hit an 8-month low.

     The Street was heartened by the reports since they suggest the Fed will not raise its benchmark interest rate in the near future with the prospect of a slowing in the economy –  Go figure !  

     It’s still the “bad is good” mentality – Who are these people ?  Really – Stocks have risen in the past along with rising interest rates to a point. But a bump off “zero” shouldn’t devastate the economy.

     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: Yesterday’s momentum can drive the DJIA up to 18,096 (S&P500: 2,094). That would be a stretch after yesterday’s sharp rebound. A little slippage would be normal in early trading

Near-term support is DJIA 17,927 (S&P500: 2,073).  Breaking that, DJIA 17,797 (S&P 500: 2,057) comes into play.

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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