Indices
Dow + 30.15 at 10,804.51 I Nasdaq + 9.44 at 2,051.04 I S&P 500 + 6.75 at 1,206.83
Market Wrap
(Briefing):
Late-day buying, prompted by breaking biotech news and falling bond yields, coupled with new M&A deals and key CEO changes, were enough to counter higher oil prices... Upbeat news in Biotech (+5.0%), during a day that saw few market-moving catalysts, provided a strong leg of buying support heading into the close as market breadth turned modestly bullish...The Biotech industry, which earlier held modest gains amid upbeat remarks about Genzyme Corp. (GENZ 57.80 +2.20), regarding stronger EPS growth and improving margins, soared following an interim analysis of Phase III trials from Genentech (DNA 54.83 +10.75)...
Confirmation that DNA's Avastin drug (in combination with chemotherapy) aids in lung cancer survival was exactly what the doctor ordered to improve sentiment enough to return sellers to the sidelines and help the Dow climb back into positive territory for the year... While Treasurys were relatively unchanged most of the day, with yields above 4.5% contributing to the overall cautious sentiment, bonds attempted to rally amid uncertainty ahead of event risks tied to upcoming economic data... The benchmark 10-year note closed up 8 ticks to yield 4.5%, somewhat offsetting interest-rate worries that loomed last week when bonds got hammered and recorded their worst weekly sell-off in 10-months... Pressuring equities most of the day, however, were rising crude oil prices ($54.95/bbl +$0.52), amid uncertainty of OPEC raising output quotas at this Wednesday's meeting in Iran... Meanwhile, IBM (IBM 91.89 +0.38) agreed to acquire Ascential Software (ASCL 18.29 +2.59) for $1.1 bln while Altria Group (MO 65.30 +0.16) expanded its presence into the world's fifth largest cigarette market with a $5.2 bln bid for Indonesian tobacco firm PT HM Sampoerna... Walt Disney (DIS 28.00 +0.41) also made headlines when it named current President and COO Robert Iger as the successor to CEO Michael Eisner while AIG (AIG) announced that CEO Maurice "Hank" Greenberg could resign as early as this week... Fueled by both resurgence in M&A and new CEO appointments was OfficeMax (OMX 34.47 +0.31)... While OMX - the only notable earnings report - handily missed Q4 expectations due to weak holiday sales, the market arguably ignored their disappointing results in favor of a statement from rival Office Depot (ODP 20.76 +1.57)... ODP appointed former AutoZone (AZO 85.79 -12.51) CEO Steve Odland as Chairman and CEO, arguably increasing speculation that OMX could be acquired... Strength in Software and Semiconductor offset losses in Hardware and Disk Drive while Financial, Health Care and Consumer Staples were influential leaders to the upside... A JP Morgan upgrade on Williams Companies (WMB 18.60 +0.71) helped fuel widespread buying interest in Utility while strong gains in Delta Air Lines (DAL 4.62 +0.32), which announced a flurry of new low sales fares, provided a boost to Transportation... Even the Materials sector, under pressure most of the day due to profit taking in Steel and a rebound in the dollar, eked out a slim gain... Potentially oversold conditions in the greenback lifted the currency to its best levels in more than a month against the euro (1.3365) and strengthened it against the yen (104.93) following news of a 28% year-over-year contraction in Japan's Jan. current account surplus...NYSE Adv/Dec 1754/1587...NASDAQ Adv/Dec 1661/1453.
Trade system guidelines
(edited):
Only available to Newsletter Subscribers.
1.
JBHT - J B Hunt
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 49.33
|
2.
CB - Chubb Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 80.95
|
3.
GE - Genl Electric
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 36.22
|
4.
JCP - JC Penney
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 48.96
|
5.
TTN - Titan
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 18.58
|
6.
CAT - Caterpillar
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Short |
Below 15 min low |
Cover 1/2 once risk covered |
Above HOD at time of setup |
|
|
* Please Note: If the stock gaps up at the open do not enter the trade unless it trades below 96.18
|
7.
WLP - Wellpoint Hlth Networks
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 03-15 |
|
Short |
Below 15 min low |
Cover 1/2 once risk covered |
Above HOD at time of setup |
|
|
* Please Note: If the stock gaps up at the open do not enter the trade unless it trades below 121.41
|
==============================
EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
==============================
DISCLAIMER: Trading in securities may not be suitable for all individuals.
Consult your broker or other professional to determine your suitability.
The discussions provided by Day Trading It are for educational purposes
only and should not be taken as a recommendation to buy or sell the
referenced security. Past performance is not indicative of future results.
Please keep in mind that these picks are chosen up to 12 hours before the markets open. During this time conditions, which will effect entry and exit on the above listed ideas, may change.
