Market Alert - Last Hour

Stocks are making a reasonable comeback after opening lower on trade war worries. DJ30 700+ points off the low. Ah, another day without the Fed governor applied to the markets, this time to the upside.

SP500 34.59, 1.33%
NASDAQ 113.44, 1.63%
DJ30 274.13, 1.11%
SP400 1.01%
RUTX 1.21%
SOX 1.38%
NASDAQ 100 1.79%

There are stocks we like moving higher (of course), but on several the volume is light. Really light. On others trade looks good because it is not nearly as light as others. That does not, however, equal good volume. We picked up some AMED (very solid sector) and some TJX earlier, still looking at PANW, M if they can improve the volume a bit. Others e.g. NTNX, DDS bouncing but thus far not a lot of volume.

DJ30 and SP500 held the recent lows and bounced, refusing to sell farther here at the February lows. NASDAQ and SOX both bounced nicely off the trendline, NASDAQ off the 2016 trendline. RUTX, SP400 up off the 200 day MA. All are bouncing.

Volume will have to show it can come in. Right now NASDAQ, NYSE running lighter by 3% and 5% respectively. Not a huge swell of trade unless there are a lot of buy on close orders that push volume back up. A low volume rally is, as you have seen, not that trustworthy.

Larry Kudlow is credited with the move, appearing on television via interview telling everyone to calm down and see how backchannel negotiations and Trump 'laying his cards on the table' with China works. Oh, whew. I thought the two sides were talking tens of billions in tariffs, not just talking and working on their game of cards.

Markets bought it, surged. Again, we will see how the volume turns out and give the move the benefit of the doubt -- kind of. In other words, the move is good enough to let positions continue to recover and not use today to bail from positions. This is, after all, a substantial turnaround.

New positions? Picked up AMED, TJX as noted, looking at PANW, M and others, but still watching the volume levels and not all that impressed.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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