Swing Trading Strategies & Stock Picks Since 2003

Dow Industrial Average

Key Statistics: Mar 10

Open: 10560.13

High: 10601.79

Low: 10526.52

Close: 10567.33

Change: 2.95 (0.02%)

RSI: 66.18

MACD: 70.47

Strategy

The recent uptrend has started showing signs of showing signs of tiring out again and is finding difficult to advance with a strong momentum, as participants are now becoming risk averse. However, the cheap borrowing costs is still allowing the indices to gain at a nominal pace.

Market Commentary

The US markets remained flat for a major part of the Wednesday’s session, as a listless trading dominated the proceedings for a major pat of the day. The markets remained range-bound with little volatility, The Dow Industrial Average closed with nominal gain of 2.95 points or 0.02 % at 10567.33 points. However, the technology heavy Nasdaq Composite fared better yet again for the third successive day by advancing further by another 18.27 points, to 2358.95 points. The S&P 500 index closed with gains of over 5 points at 1145.61 points at the end of the session.

The Senate on Wednesday approved a wide-ranging bill that would push back the deadline to file for extended unemployment insurance until year-end and extends dozens of expired tax breaks.

Bank stocks advanced on upbeat analyst comments and bullish statements from some executives. Citibank  rose 3.6% after the company priced a $2 billion offering of trust-preferred securities. Bank of America (BAC, Fortune 500) gained nearly 2%.

American International Group soared over 10% as investors cheered the insurance giant's recent asset sales.

Fannie Mae and Freddie Mac also gained significant ground for the second day insuccesion.

Technology stocks also posted strong gains. Over 2.9% gain in Google Inc. led the rally in IT stocks, in anticipation that it may soon conclude negotiations with the Chinese government regarding censorship and monitoring of its Chinese sites. 

The U.S. Commerce Department said wholesale inventories fell 0.2% in January, after a 1% drop the month before, raising expectations that consumer demand is strengthening.

Over the past one month, fewer states are anticipated to have reported increases in unemployment in January.

In a major M&A activity, Shares of Facet Biotech surged 66% after Abbott Labs announced plans to acquire the company for a premium valuation of $27 a share. Abbott gained about 0.7%.

China reported a 46% increase in exports during February. The rise was due in part to stronger demand from consumers in the United States and Europe. However, later it was announced that the CPI for February in China picked up significantly compared to a year ago figure.

The price of oil rose 60 cents to settle at $82.09 after hitting a high of $83.03 earlier in the session.

The dollar slipped versus the euro but rose against the yen and the pound, thus leaving the Dollar Index almost stable at the end of the session.

However, the price of gold fell $14.20 to close at $1,108.10 an ounce.

The Dow stocks which advanced in the session were exactly balance with those with those declining in the session. Boeing, Bank of America and Intel Corp led from the font. However, Travelers Inc, Merck and Cisco Systems shed some gains in the session.

The Day Ahead

Weekly jobless claims report

International Trade for January

EIA Natural Gas report