Market Isn't Out of the Woods

 | Sep 15, 2016 | 11:46 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

airg

,

FB

,

stkl

,

tpic

,

amzn

A bounce in oil, continued strength in Apple (AAPL) and leadership in FANG names is helping the market this morning. Breadth has been steadily improving and is hitting 2-to-1 positive.

Bonds are weak again but chances of a Fed rate hike this year have fallen to under 50%. It is a bit puzzling that bonds continue to trade poorly, especially after the weaker-than-expected retail numbers this morning.

While we have a better tone of action this morning and key underlying support at S&P 2119 is holding, this market is not out of the woods. This is what we need to turn back up, but the risk of another rollover is high and the chances that 2119 doesn't hold are also high.

Keep in mind that the FOMC decision is Wednesday and there is going to be endless discussion about that over the next few trading days, even if there is little chance of a rate hike. That policy statement is going to be of particular interest.

The whole concept that a dovish Fed is always a market positive is being called into question, which helps explain the action in bonds. We'll discuss to a much greater degree in front of the Fed, but this market doesn't look like it is as willing to celebrate a delay in rate hikes if it means we have a lousy economy.

I don't have a lot of trades going at the moment, but Airgain (AIRG) indicated it will announce earnings next week and is strong on the news; SunOpta (STKL) , which I highlighted recently, is breaking out; Facebook (FB) continues to be my favorite big-cap name; and TPI Composites (TPIC) , which is my favorite smaller name, is flat despite news of an Amazon (AMZN) wind farm. (Apple and Facebook are part of TheStreet's Action Alerts PLUS portfolio. Amazon is part of the Growth Seeker portfolio.) 

Stock picking is a bit tougher but at least the market is holding where it needs to for now.

Columnist Conversations

Now that AAPL has violated the shorter term support, these are the two areas I have to consider for new buy en...
The symmetry is holding up in MCD.  Target 1 is 163.34 if we continue to hold above here!  ...
As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.