McCall's Call
Today I will list some random thoughts I had throughout the first trading day of the week.
· A large number of upgrades today for stocks in a variety of sectors. Are the analysts finally starting to see value in this market? I sure as heck see value in this market and if you have a 3-5 year timeframe – there are some big-time bargains out there!!
· The rally has the $SPY within 50 cents of closing the gap left by Thursday’s big gap down on the open. It is not rare to see a chart in which a gap is filled before the ETF reverses in the direction of the gap. In this case it was a big gap down. Therefore we need to watch the action into mid-week to see if the top of the gap proves to be resistance. The level to watch on the $SPY is $116.50.
· The precious metal slump continues, however both gold and silver were able to rally well off the lows hit last night. Silver was down nearly 10% at one point in overnight trading. The contract closed near breakeven. Copper, which has also taken a beating was able to rally all the way back into positive territory. ETFs to watch $SLV $GLD $JJC
· Stocks in the news: Apple ($AAPL) was down as much as $17 during the session after reports surfaced that the company is ordering less parts for their iPad 2 device. Throughout the day there have been firms coming out and defending Apple. Is it due to their new Brazil supplier contract? Maybe the iPad 3? Either way, investors used the weakness as an opportunity to buy as Apple rallied to close down less than $2.
- Retailers Strong today with SPDR S&P Retail ETF ($XRT) up 3.4%. Limited Brands ($LTD) closed within 1% of a new all-time high. Other retailers within striking distance of new all-time highs include: TJX Companies ($TJX), Costco Wholesale ($COST), Amazon.com ($AMZN), and Ross Stores ($ROST).
