US markets finished mixed Wednesday, with the Dow the only major index to finish in positive territory. The quiet action was not surprising as investors wait for the ECB statement tomorrow. The market is in a bit of a tough spot to call right now. “Summer” trading is officially over, but markets are still thin and lethargic in front of market-moving announcements.
The market has really just been consolidating since the bearish outside day on August 21st, but also holding constructively above 1395-1398 as the range tightens. As traders, though, we are fortunate to be able to pick our spots for exposure and play only select in-play stocks.
This morning the agricultural group showed some relative strength and came back in play after a two week break. The names we watch in that sector are CF Industries (CF), Agrium (AGU), Monsanto (MON), Mosaic (MOS) and PotashCorp (POT).
Goldman Sachs (GS) was strong all day, a very positive development for the market.
LinkedIn (LNKD) we have highlighted several times in Off the Charts over the last few weeks as the standout among the social media stocks, and it saw some nice action.
Wall Street was impressed with Facebook (FB) Founder and CEO Mark Zuckerberg’s decision not to sell any of his stock when the lock-up expires. The show of solidarity bred confidence among investors, and the stock finished the day up nearly 5% at $18.58.
High beta tech is in decent shape but needs time.
Gold (GLD) and Silver (SLV) are flagging and I don’t think the highs of this move are in.
Just a reminder that the ECB statements come out tomorrow at 7:45 am ET and then the Press Conference is at 8:30 am ET. It will be interesting to see if Draghi has anything really new and substantive to say, or whether world central banks continue to just tease the markets with promises.
I think it’s okay to have some small positions on with a hedge—and then add as we see a bit more direction.
Disclosure: Scott Redler is long AAPL, JPM, FB, GLD. Short SPY. Traded but flat LNKD, FSLR, AKAM.