After running into some headwinds early on, amid more news tied to lingering credit concerns, additional evidence to suggest Wednesday's widespread sell-off was overdone helped stocks recover some ground.
However, the major averages closed off their highs, volume was light again, and market gains were modest at best as investors weren't willing to place huge bets ahead of Friday's influential jobs report.
Since the market sees the August employment report as crucial to the Fed's policy decision on September 18 (or before), payroll growth averaging a strong 132,000 over the last six months doesn't leave investors overly convinced that Friday's jobs data will play into the Fed rate cut that Wall Street has priced into the market since policy makers shifted their stance last month.
Among the handful of encouraging news items giving participants a reason to recoup some of wednesday's losses, the bulk of back-to-school sales results checking in better than expected offered some reassurance that the consumer is holding up rather well.
Atlanta Fed President Dennis Lockhart later saying there are no signs that the housing and subprime mortgage market woes are spilling over into other sectors of the economy lent further validation that consumer spending remains healthy.
St. Louis Fed President and voting Fed official Poole, though, said that he sees evidence for a 'further leg down' in housing, that there was "no question" financial problems would worsen, and that the Fed won't be pushed into a decision.
Of the nine sectors finishing in positive territory, Utilities turned in the best performance, but that also speaks to the more risk-averse mindset that has contributed to the S&P 500 losing 5% of its value since peaking in mid July.
The Materials sector (+1.1%) was the next best performer, due largely to a 2.0% rally in gold prices.
The Industrials sector (+0.9%) got a lift late in the day after Dallas Fed President Fisher said he doesn't see the dynamics of a very strong economy changing overnight in the face of the financial turmoil that we've recently seen.
The Financial sector was the only sector that failed to participate in Thursday's recovery; but its decline was minimal despite a slew of negative developments -- from the three-month Libor rate climbing for an 11th straight session to foreclosures rising to their third consecutive record high -- that continue to plague the heavily weighted sector.
Trade system guidelines
(edited):
Only available to Newsletter Subscribers.
1.
MUR - Murphy Oil Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-07-07 |
|
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 62.62
|
ICE - IntercontinentalExchange Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-06-07 |
|
Short |
140.03 |
Reached (138.04) |
Above 140.03 |
up to + $3.83 per share (136.20) |
|
* 09-06-07 - stock gapped up
|
TXT - Textron
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
|
|
Short |
Below 15 low |
Cover 1/2 once risk covered |
Above HOD at time of setup |
|
|
* did not setup
|
VDSI -Vasco Data Security International
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-05-07 |
09-06-07 |
Long |
34.87 |
35.71 |
Closed Below 33.89 |
up to -$1.05 per share (35.31) |
|
|
SII - Smith International Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 08-31-07 |
|
Long |
66.49 |
Reached (67.33) |
Below 68.25 |
up to + $3.17 per share (69.66) |
|
|
INTC - Intel Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 08-30-07 |
|
Long |
25.27 |
Reached (25.21) |
Below 25.88 |
up to + $1.16 per share (26.43) |
|
* 08-30-07 - stock gapped down
|
NOV - National Oilwell Varco Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 08-30-07 |
|
Long |
123.69 |
Reached (125.79) |
Below 132.01 |
up to + $11.21 per share (134.90) |
|
* 08-30-07 - stock gapped down
|
MDR - McDermott International
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 08-30-07 |
|
Long |
91.24 |
Reached (92.28) |
Below 96.28 |
up to + $8.72 per share (99.96) |
|
* 08-30-07 - stock gapped down
|
RL - Polo Ralph Lauren
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 08-29-07 |
|
Long |
73.29 |
Reached (74.64) |
Below 77.77 |
up to + $6.61 per share (79.90) |
|
* 08-29-07 - stock gapped down
|
* Key
==============================
HOT = High of Trade.
LOT = Low of Trade.
HOD = High of day.
LOD = Low of day.
EOD = End 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.
