By Markus Heitkoetter
What a day! Stocks opened the day higher on news that the Swiss National Bank will impose negative deposit rates (-.25%) in an attempt to deflate the Swiss franc currency. Regardless of the intention, markets love low (or negative) interest rates and global markets moved higher.
U.S. Stocks took the morning session to digest the news and take in yesterday’s reaction to the Fed. Then it was off to the races! At day’s end the main indices were looking at impressive gains and closing at session highs.
The DOW added a whopping 421 points in a single trading session! With its 2nd consecutive triple digit gain and a 2.4% increase for the day, the DOW closed at 17778.15. It was the largest single day increase for the DOW in 3 years!
The S&P matched the DOW with a 2.4% gain as it pulled away from the 2000 mark. With a close of 2061.23 the S&P ended the day 48 points higher. Just 2 days ago the S&P was looking at a 5% loss. But with today’s close the S&P is back within 14 points of its all-time high set on 5th Dec 2014.
While stocks around the world traded higher, Crude Oil continued its march lower. Today the commodity finished 4% lower at the end of the open outcry session.
Coca-Cola (KO) gave a picture perfect Sell Signal a few days ago on 8th Dec 2014. After trading through the PowerX Profit Target, KO has turned and is heading higher. Although we’re seeing a nice push higher over the last 2 sessions, we want to see all 3 indicators turn bullish before considering a new entry.
We’re often asking about using Profit Targets. This is a perfect example of how PowerX Method ADR Profit Targets can help traders capture a move before the market turns.