Markets staged extraordinary reversals, with both the Nasdaq and S&P 500 each gaining 3% off intraday lows, Friday to cap off another volatile week. The S&P 500 which touched the round 1900 number or traded below it everyday this week and put forth a respectable 1% advance when all was said and done. The Nasdaq, which like the S&P 500 recorded a bullish hammer on the weekly, gained .4%. The S&P 500 came within 4 handles of the 1867 low made on 8/24 this week and perhaps that will satisfy those who were looking for a retest. On a YTD basis the Nasdaq is inching closer to the UNCH, lower by .6% and the S&P 500 is off 5.2% in ’15. All 10 major S&P 500 sectors were higher and 7 of the 10 by more than 1.5%. Volume was cooperative on what certainly felt like a capitulation day. Obviously no one knows whether the coast is now clear, but I will eagerly be looking for long opportunities over the weekend after being in cash for sometime. Energy sprinted the most higher by nearly 4% and perhaps we will look back on this Glencore situation as a possible bottom in the overall commodity group. Many salty traders I speak with are looking for a Q4 rally to be lead by some of the laggard sectors, like energy. That remains to be seen. I think the biotech debacle, may continue to weigh, but I would recommend sifting through the overall healthcare group and search for names in the medical devices that may have been unfairly punished. Browsing through the defensive food group, many are not guarded. Former leaders like HAIN and WWAV are 26 and 20% off respective 52 week highs. Both bounced of round numbers and in the neighborhood of 4% Friday. Anyone who would like a full copy of Mondays Game Plan email me at firstname.lastname@example.org.
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