In a near freefall, the market fell immediately after the opening bell setting the day’s lows in the first 30 minutes of trading. ISM manufacturing data disappointed as many expected the manufacturing sector to grow more than it did. While still expanding it continues to highlight the disappointments we continue to see from economic data. Luckily the market will be closed Friday as the March Jobs report is released on Good Friday. After finding the low before 10amEDT the market was able to stay range bound for much of the day. During the last 30 minutes of trading we did see the market lift and close stronger than it has recently. However, we still do not have any follow-through in either direction of the market. We are still in neutral mode with March lows holding in place for now, but we remain vigilant with our process and will act accordingly.
Crude oil jumped nearly 5% today and while we can blame a potential hiccup in the Iranian Nuclear talks it almost appears this commodity wants to move higher regardless. The commodity remains above its January lows for now as well as its March lows. It hasn’t been able to create a higher high just yet, but at the very least it is trying to stabilize. Perhaps another geopolitical event elsewhere in the world may be giving the commodity support down at these lows. To be continued.
A favorite holding for many of our chat room members is RCPT. For the past few trading sessions the stock has held up relatively well despite it being in the Biotech group. A news headline hitting the wires at 3:42pmEDT outlining a potential takeover shot the stock up well over the $200. Just as fast as it took out the $200 level the stock made its way back down. What we witnessed was crazy action for the last 18 minutes of trading for the stock. Tough to move that quickly when HFT boxes have the advantage of speed. In the end, we still leave the day with solid gains.
The good news is for this week we have one day left prior to the weekend. It is always nice to have a holiday shortened week. Friday we will see the release of the March jobs report and while it would be fun to watch the fireworks preceding the release we can wait till Monday. Besides, the news usually wears off pretty quickly after the release.
