Things Got Dicey

Things got a bit dicey last Friday. I was expecting an interesting Friday after AMZN was hammered in the after hour trading on Thursday. When the market is extended and so many traders are just looking for an excuse to sell, it doesn’t take much. After the SP500 pushed above 1300 with a negative advance/decline along with the uncertainty from the uprising in Egypt, the traders found that to be enough reason to sell. Is this sell off the beginning of a correction?

The SP500 still appears it will close above 1300 and the DJIA is destining to move beyond 12,000. Until the SP500 close above the 1300 and the DJIA move pass 12,000 decisively or the SP500 to break below 1262, I will remain cautiously bullish. I would categorize Friday’s sell off as a pull back and I will keep a close watch on some of those stocks that were hit hard during the last couple trading sessions to bounce off their intermediate support.

SP500:



DJIA:



Nasdaq 100:




With food prices rising, the agriculture sector could be an interesting play. Here is the price chart for MOO showing how it is bouncing off its support trend line:



And one of the fertilizer stock Agrium, AGU behaving similarly as the MOO ETF: