The S&P narrowly climbed back into positive territory in the last hour of trading Wednesday after opening lower this morning. Volume remains light and the market doesn't seem to have much power, but technically indices are still intact. The tug of war between US data + earnings and Europe's debt woes continues. Investors thus far are choosing to place a greater emphasis on encouraging signs that a more significant recovery is taking hold.
Last night on CNBC's Mad Money, host Jim Cramer highlighted and credited Scott Redler's analysis on the homebuilders, and the sector had a strong day today after Lennar (LEN). Lennar (LEN) finished the day up more than 7% while the Homebuilders ETF (XHB) was up 1.5%. Today's moves build on what has been a strong comeback for the downtrodden sector. Momentum for the homebuilders is a very encouraging sign for the economy, and the recent rally could be a harbinger of things to come.
Solars stocks had a very strong day as well. Interest seems to be returning in the very oversold and oft-criticized sector. Group leader First Solar (FSLR) jumped nearly 8%, while Chinese solar stocks like Jinko Solar (JKS), up 32% on the day, were even stronger. JKS even closed well off its highs, at one point up more than 50% on the day.
So while action in the indices remain muted, there is action to be had for the active trader focusing on sector rotation.
*DISCLOSURES: Scott Redler is long DANG, GS, POT, CSCO, OIH, JPM, MCP, SPY, RENN, LNKD, GNK, X, QCOM, GOOG calls. Short DIA. Marc Sperling is long GS, VXX, MCP, FSLR, AMZN, CSIQ, JKS, YGE, FIO, and GRPN. Evan Lazarus is long LULU calls. Short LULU stock and WTW.
