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MV Weather Report: Bulls Rain On Bears' Parade


Rain or shine, we review the day's biggest stock stories

The rally continues; the bears just can't seem to get 'em down. Yesterday, we said it was positive that the 50 DMA held. The market continued off of yesterday's late strength, surging up to the S&P 830 level, which has served as resistance over the last few days.

The reason for the rally today was a strong 7-year bond auction. The S&P surged higher on this, closing right on the highs of the day at 832.

Here's what Professor Jeff Cooper said today on the Buzz about the current technical set-up:
"In other words, the back-and-fill below 830 may mean that the next time through will see an bona fide extension. Offsetting the October intraday and closing lows of 840ish and 849 would project to the next level of 90 degrees up or 890 which is a full two revolutions of 360 degrees up from the 667 SP low. If that occurs before quarter end it will turn the Monthly Swing Chart up on trade above the February high of 875.

"A move by the S&P back below 814/815 and a break of the 50 period m.a. on the 10 minute chart suggests that yesterday's midday decline may have been a A leg down and the snapper that has continued into this morning a B leg up to be followed by a C leg down that flushes the 50 day moving average."

The leaders of today's action were the NASDAQ stocks: First Solar (FSLR), Apple (AAPL) and Research in Motion (RIMM). The agriculture stocks were also quite strong: Monsanto (MON) and Potash (POT) had very big days. The notable laggards: The bank stocks - which isn't surprising, considering the run they had.

Speaking of bank stocks, there;s been a lot of talk that the regional banks may be the place to be. Here's a buzz from Professor Sean Udall:

"I've been looking at Zions Bancorp (ZION) and Suntrust (STI) on the long side. I've traded Zion long a couple times but I've never done a deep dive on these, though I'm thinking historic net interest margin should be more than enough once a passable M2M rule is in place.

"Gun to head I'm thinking a much bigger move on Zion is northward, but my personal expertise lies with the I-banks and transaction processors (all of which I like)."

Alright, Minyans - it's almost the weekend. Have a great night!

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positve change in the lives of children.
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