14 Feb 2014 AMC - Market went higher on Valentine's Day once again!

14 Feb 2014 AMC - Market went higher on Valentine's Day once again!

Market Summary 

European Markets Closing Prices

European markets are now closed; stock markets across Europe performed as follows:

·         UK's FTSE: + 0.1%

·         Germany's DAX: + 0.7%

·         France's CAC: + 0.6%

·         Spain's IBEX: + 0.3%

·         Portugal's PSI: + 1.5%

·         Italy's MIB Index: + 1.6%

·         Irish Ovrl Index: + 0.4%

·         Greece ATHEX Composite: + 0.7%

Before Market Opens 

S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -2.00.
The S&P 500 futures trade less than three points below fair value.

The major Asian bourses ended mostly higher while Japan's Nikkei (-1.5%) lagged. The market was pressured by yen strength as the dollar/yen pair dropped back below the 102.00 level after starting the session just shy of 102.50. In economic data, Chinese CPI saw a slightly hotter than expected reading of 2.5% year-over-year (2.4% expected) while PPI was in-line at -1.6% year-over-year. Elsewhere, India's Wholesale Price Index eased to 5.1% year-over-year (5.8% expected versus 6.2% previous). 

·         Japan's Nikkei lost 1.5% as the stronger yen weighed. Real estate shares saw notable losses as Mitsui Fudosan and Sumitomo Realty & Development fell 5.9% and 6.5%, respectively. 

·         Hong Kong's Hang Seng rallied 0.6% to its best week in five-months. Casino stocks paced the advance as Galaxy Entertainment added 2.4% and Sands China tacked on 0.9%. 

·         China's Shanghai Composite gained 0.8%, climbing for the fifth time in six February sessions. Financials saw notable weakness with China Citic Bank giving back 1.8% after surging more than 35% over the first four trading days of the week. 

Major European indices hold gains across the board with Italy's MIB (+1.7%) in the lead even after Prime Minister Enrico Letta submitted his resignation. The office of President Giorgio Napolitano said talks on forming a new government will begin after 5:00 PM local time. Like equities, Italian bonds took the news in stride and the benchmark 10-yr yield remains near 3.70%, representing the lowest level since late 2010.

Participants received several economic data points. Eurozone GDP rose 0.3% quarter-over-quarter (0.2% expected, 0.1% prior) while the year-over-year reading increased 0.5% (0.4% forecast, -0.3% last). Germany's GDP increased 0.4% (0.3% consensus, 0.3% prior) while the year-over-year reading reflected growth of 1.3% (1.3% expected, 1.1% previous). French GDP rose 0.3% quarter-over-quarter (0.2% consensus, -0.1% last) and nonfarm payrolls ticked up 0.1% quarter-over-quarter (-0.1% expected, -0.1% prior). Italy's GDP rose 0.1% quarter-over-quarter (0.1% expected, 0.0% prior) while the year-over-year reading declined 0.8% (-0.8% consensus, -1.9% last). Elsewhere, Spain's CPI fell 1.3% month-over-month (-1.3% expected, 0.1% prior) while the year-over-year reading ticked up 0.2%, as expected (0.3% previous). 

·         Great Britain's FTSE is higher by 0.1%. Miners are showing strength with Antofagasta, Fresnillo, and Glencore Xstrata up between 1.8% and 4.7%. Staple stocks lag with WM Morrison Supermarkets and J Sainsbury down 2.2% and 1.7%, respectively. 

·         In France, the CAC trades up 0.5% with Renault in the lead. The carmaker is higher by 3.2%. On the downside, consumer names Danone, L'Oreal, and Pernod Ricard display losses between 0.3% and 1.2%. 

·         Germany's DAX holds an advance of 0.6%. ThyssenKrupp leads with a gain of 2.9% after reporting better-than-expected results. 

·         Italy's MIB outperforms with a gain of 1.6% as banks display strength. Banco Popolare and UniCredit are both up near 2.7%.

Asia

·         The major Asian bourses ended mostly higher

·         Chinese CPI saw a slightly hotter than expected 2.5% YoY (2.4% YoY expected) while PPI was in-line at -1.6% YoY

·         India's Wholesale Price Index eased to 5.1% YoY (5.8% YoY expected v. 6.2% YoY previous)

·         Japan's Nikkei (-1.5%) lagged the rest of the region as the stronger yen weighed

·         Hong Kong's Hang Seng (+0.6%) rallied to its best week in five-months

·         China's Shanghai Composite (+0.8%) gained for the fifth time in six February sessions

·         India's Sensex (+0.9%) rallied as wholesale inflation fell to a seven-month low

·         Australia's ASX (+0.9%) climbed for the sixth time in seven sessions

Europe

·         Markets are higher across Europe as Eurozone Flash GDP grew a better than expected 0.3% QoQ (0.2% QoQ expected)

·         German GDP outpaced estimates (0.4% QoQ actual v 0.3% QoQ expected) 

·         French GDP (0.3% QoQ actual v. 0.2% QoQ expected) and preliminary non-farm payrolls (0.1% QoQ actual v. -0.1% QoQ expected) both beat

·         Italy's MIB (+1.6%) outperforms after today's in-line GDP reading (0.1% QoQ) showed the country's economy returned to growth for the first time since 2011. Also notable, Prime Minister Enrico Letta has resigned, and is expected to be replaced by Matteo Renzi. 

·         Spanish yields are moderately lower with the 10y -5bps @ 3.580% and at the lowest level since early 2006

Treasuries

·         Treasuries have slipped to their worst levels of the session following the import/export pricing data

·         Light selling has yields +2bps, causing the 10y to flirt with 2.750% resistance

Market Internals

Market Internals -Technical-
The Dow closed up 127 (+0.79%) at 16154, the S&P 500 closed up 9 (+0.48%) at 1839, and the Nasdaq closed up 3 (+0.08%) at 4244. Action came on below average volume (NYSE 609 mln vs. avg. of 701; NASDAQ 1727 mln vs. avg. of 1855), with advancers outpacing decliners (NYSE 2079/1032, NASDAQ 1372/1225) and new highs outpacing new lows (NYSE 149/13, NASDAQ 135/11). 

Relative Strength: 
Silver-SLV +4.61%, Junior Gold Miners-GDXJ +3.62%, Copper Miners-COPX +2.64%, Indonesia-IDX +2.55%, South Africa-EZA +2.49%, Middle East and Africa-GAF +2.38%, Rare Earths-REMX +2.16%, Metals and Mining-XME +1.98%, Chile-ECH +1.81%, Turkey-TUR +1.7%.

Relative Weakness: 
Vietnam-VNM -2.67%, Biotechnology-XBI -1.72%, Volatility-VXX -1.51%, Biotechnology-IBB -0.97%, Natural Gas-UNG -0.87%, Basic Materials-IYM -0.7%, Greece-GREK -0.59%, Japan-EWJ -0.44%, Brazilian Real-BZF -0.23%, Israel-EIS -0.23%.

Leaders and Laggards

Technical Updates

Commentaries 

Closing Market Summary: Stocks End Strong Week on Upbeat Note
The stock market ended an upbeat week on a positive note. The Dow Jones Industrial Average (+0.8%) paced the advance while the S&P 500 gained 0.5%. The Nasdaq (+0.1%) lagged, but was able to finish at its highest level since late 2000.

Today's advance capped an impressive week during which the benchmark S&P 500 gained 2.3%. Even though stocks rallied sharply, it is worth noting that all five sessions of the week saw below-average volume while bellwether groups like financials and transports struggled to keep pace with the broader market. The financial sector added just 0.2% on Friday, extending its weekly gain to 1.6%. For its part, the Dow Jones Transportation Average (+0.3%) added 0.9% for the week.

Similar to financials, other top-weighted sectors like health care (+0.4%) and technology (+0.2%) lagged while consumer discretionary (+0.6%), energy (+1.5%), industrials (+0.7%), and materials (+0.7%) picked up the slack.

The energy sector drew considerable strength from its largest member, ExxonMobil (XOM 94.11, +2.68), which surged 2.9%. The Dow component regained its 100- and 200-day moving averages in a move that was aided by an ISI Group upgrade to ‘Buy' from ‘Neutral.' On a related note, crude oil ended little changed at $100.29/bbl.

Elsewhere among commodities, precious metals remained on a torrid pace. Gold futures posted their seventh day of gains, climbing more than 5.0% in that timeframe. Meanwhile, silver capped an eight-day run that saw the metal jump nearly 8.0%. This translated into another strong session for gold miners as theMarket Vectors Gold Miners ETF (GDX 26.35, +0.48) rose 1.9%.

Mining shares contributed to the outperformance of the materials sector, which also benefitted from gains among steelmakers after Cliffs Natural Resources (CLF 23.16, +1.26) reported better-than-expected results.

Staying on the earnings theme, apparel retailer V.F. Corp (VFC 56.85, -3.04) slumped after announcing disappointing results and issuing a profit warning. The stock tumbled 5.1%, which kept a lid on its peers. The rest of the discretionary sector held up well with help from homebuilders. The iShares Dow Jones US Home Construction ETF (ITB 25.21, +0.28) rose 1.1%.

Interestingly, builder shares outperformed even as Treasury yields inched higher. The benchmark 10-yr yield rose one basis point to 2.74% after ending last week at 2.68%.

As mentioned earlier, trading volume was well below average with only 609 million shares changing hands at the NYSE. Today's final tally represented the lowest total since January 3.

Today's economic data included three reports: 

·         Export prices, excluding agriculture, ticked up 0.2% in January after increasing 0.3% in the prior reading. Excluding oil, import prices rose 0.3%, which follows last month's downtick of 0.1%. 

·         Industrial production declined 0.3% in January after increasing 0.3% in December while the Briefing.com consensus expected an increase of 0.3%. Once again, the hard economic data did not mesh with the results in the ISM report and the related regional surveys. Those reports showed solid, albeit slightly unsteady production levels in January. Instead of translating into slightly positive growth, however, actual manufacturing production fell 0.8% in January. That was the largest drop since May 2009. Making matters worse, manufacturing production growth was revised down for each month going back to October. After the revisions, fourth quarter manufacturing production only increased 4.2%, down from an originally reported gain of 6.2%. This comes after the ISM Production Index was recorded above 60 during that entire time, suggesting manufacturers are definitely not doing what they are saying in the surveys. The motor vehicle sector was hit especially hard in January. Assemblies fell by 1.0 million, from 11.64 million in December to 11.62 million in January. 

·         The preliminary reading for the University of Michigan Consumer Sentiment Index for February was unchanged at 81.2 while the Briefing.com consensus expected the index to fall to 80.2. The Current Conditions Index weakened slightly, falling from 96.8 in January to 94.0. This was offset by an increase in the Expectations Index from 71.2 to 73.0 in February. 

Bond and equity markets will be closed on Monday for Presidents' Day. 

·         Nasdaq Composite +1.6% YTD 

·         S&P 500 -0.5% YTD 

·         Russell 2000 -1.1% YTD 

·         Dow Jones Industrial Average -2.6% 

Commodities

Closing Commodities: Silver Rises 5.1% Higher On The Day

·         Mar silver outperformed in the commodities space today, trading comfortably above the $21 per ounce level. Prices rose as high as $21.44 per ounce, a new high since November. Holding on to the momentum, silver settled 5.1% higher at $21.42 per ounce, booking a weekly gain of 7.5%.

·         Apr gold extended gains for a sixth consecutive session as the dollar index traded lower. The yellow metal traded in a tight range between $1313.80 per ounce and $1321.50 per ounce and settled with a 1.4% gain at $1319.00 per ounce. Today's advance brought gains for the week to 4.4%.

·         Mar crude oil spent most of today's floor trade in negative territory. It brushed a session low of $99.43 per barrel shortly after equity markets opened but then trended higher for the remainder of the session. Buyers pushed prices up to a session high of $100.41 per barrel moments before the energy component settled at $100.29 per barrel, booking a gain of 0.4% for the week.

·         Mar natural gas chopped around between positive and negative territory. It touched a session low of $5.16 per MMBtu in morning action and later brushed a session high of $5.32 per MMBtu. Natural gas eventually settled unchanged at $5.21 per MMBtu, bringing gains for the week to 9.0%.

COMEX Metals Closing Prices

  Apr gold rose $18.60 to $1319.00/oz 

·         Gold rose for a sixth consecutive session, gaining support from weaker dollar index. The yellow metal traded in a tight range between $1313.80 and $1321.50 and settled with a 1.4% gain. Today's advance brought gains for the week to 4.4%. 

  Mar silver rose $1.03 to $21.42/oz 

·         Silver outperformed in the commodities space today, trading comfortably above the $21 level. Prices rose as high as $21.44, a new high since November. Holding on to the momentum, silver settled 5.1% higher, booking a weekly gain of 7.5%. 

  Mar copper rose 1 cent to $3.26/lbs

CBOT Agriculture and Ethanol/ICE Sugar Closing Prices

·         Mar corn rose 5 cents to $4.45/bushel 

·         Mar wheat rose 3 cents to $5.97/bushel 

·         Mar soybeans fell 5 cents to $13.38/bushel 

·         Mar ethanol rose 4 cents to $2.06/gallon 

·         May sugar (#16 (U.S.)) rose 0.24 of a penny to 21.75 cents/lbs

NYMEX Energy Closing Prices

  Mar crude oil rose $0.01 to $100.29/barrel 

·         Crude oil spent most of today's floor trade in negative territory. It brushed a session low of $99.43 shortly after equity markets opened but buyers stepped in and pushed prices higher for the remainder of the session. The energy component touched a session high of $100.41 moments before settling one penny above the unchanged line, booking a 0.4% gain for the week. 

  Mar natural gas settled unchanged at $5.21/MMBtu 

·         Natural gas chopped around between positive and negative territory today. It touched a session low of $5.16 in morning action and later brushed a session high of $5.32. Natural gas eventually settled the session unchanged, booking a 9.0% gain for the week. 

  Mar heating oil rose 5 cents to $3.08/gallon 

  Mar RBOB rose 3 cents to $2.80/gallon

 

Treasuries

Treasuries Register First Weekly Loss in Six: 10-yr: -03/32..2.744%..USD/JPY: 101.85..EUR/USD: 1.3699
The Week in Review: 

·         Treasuries posted their first weekly loss in six. Click here to see an intraweek yields chart.

·         The complex has seen selling in seven of the past ten sessions. 

·         On Tuesday, Fed Chair Janet Yellen testified in front of the House Financial Services Committee. She hinted, "The Committee will likely reduce the pace of asset
purchases in further measured steps at future meetings." Thursday's Senate Banking Committee testimony was postponed due to inclement weather.

·         Congress approved a clean debt ceiling bill that will keep the government funded through March 2015.

·         This week's data was mostly disappointing as wholesale inventories (0.3% actual v. 0.6% expected), retail sales (-0.4% actual v. 0.0% expected), industrial production (-0.3% actual v, 0.3% expected), and capacity utilization (78.5% actual v. 79.4% expected) all fell short of estimates.

·         Only Michigan Sentiment (81.2 actual v. 80.2 expected) impressed.

·         This week's auctions were unimpressive, but not terrible. 

·         Tuesday's $30 bln 3y note auction drew 0.715% and a solid 3.42x bid/cover. A solid indirect takedown (42.0%) helped offset the weak direct bid (16.6%). Primary dealers were left with just 41.4% of the supply. 

·         Wednesday's $24 bln 10y note auction drew 2.795% (2.800% when issued) and a light 2.54x bid/cover (12-auction average 2.70x). A strong indirect takedown (49.7%) helped offset the weak direct bid (16.2%). 

·         Thursday's $13 bln 30y bond auction drew 3.690% (3.700% when issued) and a weak 2.27x bid/cover. A solid 45.2% indirect takedown helped offset the disappointing 13.9% direct bid.

·         Selling had the biggest impact on the belly of the curve as the 5y added +7bps to finish the week @ 1.525%. Traders will be watching the 1.550% resistance level over the coming days. 

·         The 10y tacked on +7bps, closing the week @ 2.746%. The benchmark yield is +16bps off its February 3 low, and is now contending with resistance in the 2.750% area that is helped by the 100 dma. 

·         Outperformance at the long end saw the 30y tack on +4bps, ending the week @ 3.700%. Treasury bears will have a difficult time running the 30y above 3.760/3.800% resistance as both the 50 and 100 dma rest in the area. 

·         The front of the curve saw a slight inversion early in the week as debt ceiling fears developed. However the curve normalized once Congress reached a deal. 

·         This week's selling swing the yield curve steeper as the 2-10-yr spread widened to 242.5bps.

The Week Ahead:

·         Markets are closed Monday in observance of Presidents Day. 

·         Tuesday's data includes Empire Manufacturing (8:30), Net Long-Term TIC Flows (9), and NAHB Housing Market Index (10). 

·         Data picks up on Wednesday with the weekly MBA Mortgage Index (7), housing starts, building permits, PPI (8:30), and the FOMC minutes (14). ATL's Lockhart speaks on the economy (12:15), STL's Bullard discusses the "U.S. Economy and Monetary Policy" (13), and SF's Williams gives his economic outlook (19). 

·         Thursday will see initial and continuing claims, CPI (8:30), Philly Fed, and leading indicators (10). 

·         Friday's data is limited to existing home sales (10). STL's Bullard continues his discussion on the "U.S. Economy and Monetary Policy" (13:10).

On other news.... 








Currencies 

Dollar Dips into the Red for 2014: 10-yr: -04/32..2.747%..USD/JPY: 101.85..EUR/USD: 1.3695

·         The Dollar Index remains on track for its worst close of 2014 as action presses the 80.15 level. Click here to see a daily Dollar Index chart.

·         Today's selling has the Index lower for the seventh time in ten days. 

·         A push below that mark puts the 79.80 area in play with the key 79.20 level looming just below. 

·         EURUSD is +15 pips @ 1.3695 as action has been supported by the mostly better than expected preliminary GDP figures from the region. The single currency has rallied in the face of the resignation of Italian Prime Minister Enrico Letta, who is expected to be replaced by Matteo Renzi, and is now probing important resistance in the 1.3700 area. A push through that level puts the late 2013 highs near 1.3800 in play. 

·         GBPUSD is +80 pips @ 1.6740 as trade climbs for a seventh day in a row and prints at levels last seen in the spring of 2011. Today's advance comes courtesy of the flight into risk assets as data and news out of the UK was absent. Sterling continues to outperform its peers at the start of 2014 as many believe the Bank of England will be the first major central bank to hike rates. 

·         USDCHF is -15 pips @ .8920 as trade nears its lowest print of the year. The .8840 level remains under careful scrutiny as a breakdown drops the pair to levels last seen in November 2011. 

·         USDJPY is -30 pips @ 101.85 as sellers remain in control for a third session. The 101.00 level will be under close watch over the coming days with a breakdown putting the 200 dma (100.20) and parity in focus. Japan's preliminary GDP will cross the wires Sunday evening. 

·         AUDUSD is +55 pips @ .9035 as trade has reversed yesterday's losses. The hard currency has seen a steady climb over the course of the session, supported by the appetite for risk assets. The .9100 area is setting up as a key level. Australian data is limited to new motor vehicle sales. 

·         USDCAD is flat @ 1.0975 as trade checks up on support in the area. Trade ticked to its best levels of the day (1.0988) following Canada's manufacturing sales miss (-0.9% MoM actual v. 0.2% MoM expected), but has since slipped back to the flat line.

Weekly Analysis
Week 1



Technical Updates


 
 
 
 

Briefing's Commentaries



Week in Review: Stocks Charge Ahead Amid Light Volume 

The stock market began the week on a subdued note. The Dow Jones Industrial Average, Nasdaq, and S&P 500 posted gains between 0.1% and 0.5% with the Nasdaq Composite ending in the lead. Overall, the session had a ‘wait-and-see' feel as many participants stuck to the sidelines ahead of Janet Yellen's testimony on monetary policy. The limited participation was reflected in the trading volume as only 640 million shares changed hands at the NYSE.

On Tuesday, the stock market rallied steadily with the Dow Jones Industrial Average (+1.2%) providing the lead. Thanks to the advance, the Dow narrowed its 2014 loss to 3.5% while the Nasdaq (+1.0%) was able to swing from a loss to a year-to-date gain of 0.4%. The S&P 500 (+1.1%) regained its 50-day moving average with all ten sectors contributing to the climb. Contrary to the expectations of many, Janet Yellen's testimony before the House Financial Services Committee was uneventful as the Chair struck a tone consistent with remarks made by her predecessor. When asked about the impact of the disappointing jobs reports for December and January on the Fed's reaction function, Ms. Yellen said it would be premature to alter policy based on a limited sample size. All ten sectors took part in the advance with energy (+1.4%) and materials (+1.2%) ending in the lead. Despite the broad rally, trading volume was below average as less than 700 million shares changed hands at the NYSE.

Equity indices took a bit of a breather on Wednesday after the S&P 500 surged nearly 4.5% in the six sessions since February 3. The benchmark index shed less than a point while the Dow Jones Industrial Average slipped 0.2%. Overall, the session was very quiet as the key averages respected narrow ranges. The S&P 500 spent the bulk of the trading day near its flat line while the Nasdaq (+0.2%) outperformed. Again, participation was well below average with less than 630 million shares changing hands at the NYSE.

Thursday's session saw the stock market rally steadily throughout the trading day despite starting on a lower note. Small caps led the way with the Russell 2000 climbing 1.3% while the S&P 500 advanced 0.6%. The benchmark index was down as much as 0.6% at the start after overnight weakness in the futures market set the stage for a lower open. The losses in futures coincided with a wave of yen strength that once again stoked fears about potential forced unwinds of the yen-based carry trade. Adding to the early weakness was a disappointing retail sales report for January. Even though stocks opened lower, the S&P 500 found support at its 50-day moving average in the 1810 area. The index also drew strength from the retreat in the yen as the dollar/yen pair climbed off its low just under the 101.75 level.


Next Week In View



Economic Commentaries

Economic Summary: Industrial Production misses expectations; Michigan Sentiment unchanged from prior reading; FOMC Minutes Wednesday at 14:00
Economic Data Summary:

·         January Export Prices - Ex Ag 0.2% vs Briefing.com consensus of ; December was revised to 0.5% from 0.3%

·         January Import Prices Ex-Oil 0.3% vs Briefing.com consensus of ; December was -0.1%

·         January Industrial Production -0.3% vs Briefing.com consensus of 0.3%; December was 0.3%

o    Those reports showed solid, albeit slightly unsteady production levels in January. Instead of translating into slightly positive growth, however, actual manufacturing production fell 0.8% in January. That was the largest drop since May 2009. To make matters worse, manufacturing production growth was revised down for each month going back to October. After the revisions, fourth quarter manufacturing production only increased 4.2%, down from an originally reported 6.2% gain. Yet, the ISM Production Index was recorded above 60 during that entire time. Manufacturers are definitely not doing what they are saying in the surveys. 

·         January Capacity Utalization 78.5% vs Briefing.com consensus of 79.4; December was revised to 78.9% from 79.2

·         February Michigan Sentiment 81.2 vs Briefing.com consensus of 80.2; January was 81.2

o    The Current Conditions Index weakened slightly, falling from 96.8 in January to 94.0. This was offset by an increase in the Expectations Index from 71.2 to 73.0 in February. The weak employment report and slightly elevated gasoline prices, which normally adversely affect sentiment, did not cause a change in consumer attitudes this month. Consumption trends are reliant on income and not sentiment. As long as income growth remains positive, consumption growth should follow.

Upcoming Economic Data:

·         February Empire Manufacturing due out Tuesday at 8:30 (Briefing.com consensus of ; January was 12.5)

·         December Net Long Term TIC Flows due out Tuesday at 9:00 (Briefing.com consensus of ; November was -$29.3 bln)

·         February HAHB Housing Market Index due out Tuesday at 10:00 (Briefing.com consensus of ; January was 56)

Upcoming Fed/Treasury Events:

·         Atlanta Fed President Dennis Lockhart (not a voting FOMC member, typically moderate) to speak Wednesday at 12:15

·         Saint Louis Fed President James Bullard (not a voting FOMc member, typically dovish) to speak Wednesday at 13:00

·         FOMC Minutes due out Wednesday at 14:00

Other International Events of Interest

·         German GDP outpaced estimates (0.4% QoQ actual v 0.3% QoQ expected) 

·         French GDP (0.3% QoQ actual v. 0.2% QoQ expected) and preliminary non-farm payrolls (0.1% QoQ actual v. -0.1% QoQ expected) both beat

Jason's Commentaries

The market headed higher once again as it's Valentine's day! The Valentine's Day indicator( as found out by my mentor Conrad Alvin Lim) that has a 100% reliability. Market started  on Friday night with a little gyration at the start of the trading session. However, the volatility turned into a rally straight to the last trading hour as profit taking started. However, there was some sort of divergence going on. TRIN was heading in the same direction as the indices. Volumes were standing at 619.8m shares traded on the NYSE. Bulls slightly outpaced the bears. The strongest leader on Friday's session is the Energy sector followed by materials, gaining 1.31% and 0.81% respectively. Exxon Mobil and Apache were the main reason why the sector went higher. As far as other sectors are concerned, they are very flat.... Looking at the technicals, I've got a feeling that the Dow will be able to hit the 16800 level as the indices were all bouncing off their support levels after the 2 weeks retracement in the market in Jan. It seems that this week we're likely to go higher if Nasdaq or Russells are able to break their high and we're gonna see a bullish week. Else, we're likely to stay flat.. Nonetheless, i'm not exactly bearish right now.

Market Call: FLAT

Date: 18 Feb 2014