Stocks Rebound From Yesterday’s Carnage

U.S. stocks rose today, with equities regaining some footing after the prior day’s rout that shaved more than 300 points off the Dow Jones Industrial Average.

Equities maintained their gains after data had factory orders falling 1.5 percent in December after a 1.5 percent gain in November.

But some market strategists felt Monday’s plunge may have gone too far. Analysts at Capital Economics said the sell-off Monday was “overdone” and that stocks will recover over the remainder of the year. They blamed Monday’s poor manufacturing numbers on unseasonably bad weather and said that further economic data could reflect a similar pattern.

Economic reports on Wednesday were more likely to be market moving, with the ADP employment report coming ahead of Friday’s nonfarm payrolls report for January. Another report on the services sector could shed light on a portion of the economy that is less sensitive to weather.

On Tuesday, Fed Bank of Richmond President Jeffrey Lacker said the drop in global equities was unlikely to divert the Federal Reserve from its tapering of monthly asset purchases.

Meanwhile, Asian markets suffered another battering Tuesday, taking their cue from Monday’s sharp sell-off in U.S. stocks.

Japan’s Nikkei index fell 4.2%, extending its losses this year to just over 14%. The slide has put the index well into correction territory, and erased a chunk of last year’s stunning 57% gain. Hong Kong’s Hang Seng also pushed into a correction, dropping nearly 3%. European markets ended mixed.

News Sources:  CNBC and CNN Money

The portfolio:

After extensive testing and analysing over the last few weeks, I have now updated the stock list for the coming new year.  Many have changed and I have decided to add in 2 leveraged ETF’s that have tested particularly well since inception.  These etf’s track the S&P 500 (SSO) and the Nasdaq (QLD) Indexes.

Nice to see a bottom put in temporarily today, a decent bounce may come now that could last a number of days.  The outlier is the jobs report on Friday morning though, we shall see…

New buy prices are now set for the new portfolio.

Bring on the bulls!

John

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