{+++} Another day that would try the patience of a saint as the market chopped to- and- fro while trying to figure out where it really wanted to land. Fits and starts were routine and there were false break outs all over the place.
Swine flu wannabe NVAX had a very strong close and DNDN was all over the place, it was strong all day and then imploded over 50% just a second before a pre announced news release. The longs at $25 were literally crucified, but wait, the news was good and was what the bulls were looking for, so tomorrow should be interesting. I have no position although I caught it for about 80 cents early from a massive short squeeze that kicked in. Too whacky for my taste. These names are usually one hit wonders and will rake your face off if you are not careful. Personally I think this drug has huge potential, especially when combined with other drugs for different diseases.
Net on the day the Dow was down 8 points, the S&P 500 down 2.35, and the Nasdaq 100 down 8.02. The Philadelphia Semiconductor Index (SOXX) was down 4.13 today.
The technicals flattened out, with advance-declines positive by just 15 to 14 on New York and by about 15 to 11 on Nasdaq. Up/down volume negative on both exchanges, by 7 to 5 on New York on total volume of 1 1/4 billion. Nasdaq traded about 2 billion shares and had about a 3 to 2 negative volume ratio.
Tomorrow morning’s focus will be on the first quarter GDP reading, which is due out at 8:30 AM ET. The consensus estimate calls for an annualized decline of 4.7% from the prior quarter. The Federal Open Market Committee issues its latest monetary policy decision at 2:15 PM ET tomorrow. The FOMC is expected to leave its benchmark interest rate unchanged at 0.25%, so most of the market’s attention will be placed on the FOMC’s policy statement.
Watch list Management- I strongly recommend creating your own watch list from the picks on this site. When I post an entry level I would try and monitor it, do it on the web or in a notebook. Most rec’s are not meant to winners the next morning, some will take a few days or not trigger at all, although I am very confident in the entry levels that I post.
