Good morning. Nasdaq is teaming up with Intercontinental Exchange to make an approximately $11.3 billion counteroffer for the parent of the New York Stock Exchange.
China's manufacturing sector was strong in March, easing fears of a sharp slowdown, on demand for autos and machinery, according to surveys released this morning.
S&P Futures are up a little as I write, and gold and silver are down after an impressive performance by Gold yesterday, as it out performed silver for the first time in months.
Oil prices rose above $107 a barrel as worries of prolonged civil conflict in Libya will keep the OPEC nation's crude exports off the market longer than expected.
Yesterday's session began without a significant gap and then tried to move higher before selling four points before 10:00 am. But the session was determined to trade in a tight range and quickly bounced to recover the four points. This began an intra-day pattern of ping-pong between 1326 and 1330. The entire session traded within less than a five point range and closed at about 20% of the intra-day range. I'm seeing heavier volume in declining stocks when compared to advancing issues in the S&P, i continue to warn of this!. Today's overall volume was light as traders were willing to simply wait for tomorrow's economic data, mainly the fake Non-Farm Payroll report.
6.2% of the SPX are above their five day moving average, 84.8% are above their 10 day average, 81.2% are above their 20 day moving average, 68.6% are above their 50 day moving average, and 87.2% are above their 200 day moving average.
One significant moving average crossover today as Emerging Markets 20 DMA crossed above the 100 DMA. But check out the top part of chart and see how most of the moving averages are on the rise and how strong the moving averages for the Russell 2000 look.
Please note: The emerging markets have significanly underperformed the US, but there seems to be a divergence from that theme now, take a look at EEM, EPU, IFN for entry, and I will have something on the CEE. The Central and Eastern European ETF has outperformed the S&P in the last few months and is up 15% since last October.
As you know I went long BGZ a couple of days ago (yes, once again!) so I am not bullish on S&P or US equities but it doesn't mean I wont go long other markets. I'm not sure if the decline in the US equities will take say stocks in Peru down. Just look at Peru last summer, as the S&P was declining EPU was ramping up and there are other examples. I'll put some charts up later.
Long: BGZ until 1333 gets taken out handily, TBT, AGQ, XLE, DBA, URA (sm. miners), JOF, POT, AGU, HAL, TTM, TKRFF
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