The major indices are basically unchanged Thursday as investors seemingly stand pat into the end of the quarter. The first quarter of 2011 was a volatile one, beginning and ending much like the last, but with plenty to talk about in between. We have seen a wave of unrest sweep through the Middle East, which as a result has seen political upheavel in several countries. Obviously the major headline is the earthquake and tsunami in Japan, which then sparked the on-going nuclear crisis in Fuskushima Daiichi. Authorities are still working to assess the environmental impact and come up with a best solution to a tragic situation.
As far as the market goes, investors reacted with horror as the nuclear crisis in Japan deteriorated. Warnings of potential nuclear holocaust sent the market plummeting on March 15-16, taking stocks negative for the year, but as doomsday fears began to be allayed, dip buyers confidently stepped in to buy in the "belly of the beast". Now the market cannot be restrained as it roars back toward multi-year highs.
Agricultural Stocks
Today from the Morning Call. the agricultural stocks gave a nice negative to positive trade early after strong EPS but disappointing revenues from The Mosaic Company (MOS). The ferts were a great quick cash flow trade but have started to pull off intraday. Long-term we are still bullish on the sector.
Precious Metals
Gold and silver gapped up big this morning, and in a slight twist, gold is holding up better than its outperforming cousin silver. After a similarly large gap up yesterday, silver was weak during the morning and early afternoon before paring losses into the close. SLV has been strong recently and we expect it to make new highs in the coming weeks, but watch the action today to see if it can hold up. GLD has not yet entered its gap, and looks poised for new highs soon.
Google Setting Up
Despite rival Microsoft Corp. (MSFT) throwing its hat into the ring in regards to the European Commision's investigation of Google's search practices, Google Inc. (GOOG) looks to be setting up for a move higher like some its tech counterparts in recent days. GOOG had a nice bounce off its 200-day and has been holding higher in a constructive flag pattern. The first technical buy is $585.50 and the add would be through $588. The target for the trade would be $600 with stops at $580.
*DISCLOSURE: Scott Redler is long BAC, LEI, AAPL, ROYL, FCX, JDSU, V, POT, GOOG, GLD, JPM, XOM, SOHU, BA, OVTI, NYX. Short SPY.
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