Market Update 23 March 2015
HT: A commenter on the Clusterstock post:
The DOW rebounded from a crushing six point opening sell off to close the day at 21,626, up 43 points for the day. The rebound came after there were reports, later denied, that European officials are working on a bailout for EU member Greece. Greece has been in a state of near suspended animation since debt woes struck the country in early 2010, though strikes have been averted through the daily airing on government controlled television of an Anthony Quinn film extravaganza.
It was the DOW’s 722nd consecutive positive close, as well as the 217th straight positive Monday close. The strongest sectors were, as has been the case for the last half decade, consumer retail, banks, homebuilders, and specialty coffee companies. Key movers were Sears Holdings, whose stocked jumped after reports surfaced that billionaire Ed Lampert was increasing his stake in the retailer to just above 100%, and KBHomes, who reported their 63rd consecutive smaller than expected quarterly loss. Overall volume was somewhat light at just under five thousand shares. There were 4,658 new highs, no new lows, with 2852 counters unchanged. 3788 companies showed no volume whatsoever, which independent market commentator Dennis Kneale was quick to point out “indicates the shares are held by strong hands“.
The market also received a small boost from influential market startegist Abby Joseph Cohen of Goldman Sachs-Wells Fargo-Bank of America Advisors, who said that she believes the market is 13.5% undervalued.
Offsetting this somewhat were comments by perennial bear Robert Prechter, who advised clients to go 10,350% short in preparation for the arrival of P3. Mr. Prechter was interviewed by Bloomberg Fox Business News reporter Charles Gasparino from Prechter’s suite at the Bellevue Institute for the Perpetually Pessimistic. The two later dined together at Elaines.In economic data, the market was buoyed by a better than expected 100% increase in sales of existing homes, though some market watchers argued the data was only cause for cautious optimism rather than outright euphoria, coming as it did after last month’s nationwide sales of that single home in the suddenly chic downtown area of Detroit....MORE
And Now This Market Is Getting Truly Ridiculous
This chart from The Pragmatic Capitalist makes us feel sorry for anyone who is short anything these days.