Rebounding Euro Triggers Sharp Equity Rally

Early Movers

Higher: CLDX +7%, GLUU +7%, DSW +7%, AAL +5%, JBLU +2%, LUV +2%

Lower: WTW -9%, CRZO -4%, MU -3%, QGEN -2%

Chaikin S&P 500 Signals

Overbought Sell: IRM

Momentum Breakout: ANTMBBYEWUNHWBA

Money Flow Buy: AVGOCTSHMCKMDTPFETELVLO

Relative Strength Buy: FIS, HAR, MCK, WYN, CELG, DHR, EQR, HON, IPG, JNPR, LM, LO, MDT, NWSAPFE, TMO

Relative Strength Breakout: CHRW, RSG, RTN

 

Groups/Stocks

Medical Products (Rank: Strong) / McKesson – MCK (PGR: Very Bullish)

MCK is in the Medical Products Industry Group, which has been a strong performer for many months. Despite hefty gains the group continues to sport a strong Power Bar Ratio (61 Bullish, 21 Bearish). The group has pulled back recently with the market, but the Chaikin Credentials for most of the stocks have remained positive. These are the type of stocks investors should be focusing on (in pullbacks) when market uncertainty/volatility is increasing. MCK registered both a Money-Flow Buy Signal and a Relative Strength Buy signal yesterday. While two signals don’t double the odds for success, they do favor MCK outperforming the market over the next 1-3 months.

(c) Chaikin Analytics, 2015

 

Overnight/Pre-Market

China extends Monday’s breakout to new 52-week highs by another +1.5% (6th gain in 7 sessions), Hong Kong continues to struggle (-0.20%) after sliding -5% in the previous two weeks and Japan gains +1%, as demand persists following February’s breakout to new 15-year highs.

In Europe the FTSE is flat (+0.13%), but the DAX is backtracking -1.4% after hitting another record yesterday (reaching +46% above the December low and +24% YTD). That’s obviously affecting the S&P futures, which are down -5 points net. Also pressuring the futures is another -2.5% decline in Crude Oil (which has moved under yesterday’s low) and a +3 bp increase in the 10-year yield.

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