Market Recap For 14th Jan 2015 – Crude Oil has monster rally! But…

By Markus Heitkoetter

Have you ever been on Mr. Toad’s Wild ride at Disneyland? It’s fun if it’s your first time to Disneyland. But it’s one of those rides that gets old pretty quick. The same could be said about the stock market roller coaster we’ve been on in 2015!

After an early drop that sent the S&P approximately 1.5% lower, the S&P retreated from session lows and found support back above the 2000 mark. Although it could have been much worse, the S&P dropped 12 points and finished the session at 2011.27.

The DOW had another triple digit loss today, dropping 187 points. The DOW was down as much as 340 points before closing at 17427.09. Its been a volatile start to the year and the DOW has had a triple digit loss or profit in 6 out of the 9 trading sessions of 2015.

There has been a strong relationship between losses in Crude Oil and stocks this year. But in spite of a monster rally in Crude Oil, this wasn’t the case today. While stocks were lower Crude Oil had the biggest gain in 2 1/2 years, ending the day 5.82% higher!

So why didn’t stocks benefit from today’s huge Crude Oil rally? One big factor was a disappointing retail sales report in early trading. Retail Sales dropped -.9% vs. a 2% forecast.

Morgan Stanley (MS) has traded lower in all but 2 trading sessions this year. Today’s 2.28% drop helped PowerX Method traders reach an ADR Profit Target at $34.87.

A PowerX Sell Signal was identified on 8th Jan 2015.

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