Nov 20th 2014 – This Market Ain’t Done Yet…

Well Well…Not too many folks expecting that rebound!

Just when this rally looked like it was petering out, further bullish moves come in to buy up even the most shallow of dips.  Leaving the bears holding their heads in horror!

There has to be a plethora of shorts in this market by now, hoping that a reversal will happen and soon.  The irony is that capitulation by the short sellers could drive the market even higher.

Personally, I think it is not quite done yet, I have two target’s in mind on the S&P 500 2064 then 2081.  Given the strong continuation of buying, I think it will get to 2081 before reversing.  We’ll see.

Market News:

U.S. stocks traded higher on strong domestic data that alleviated concerns over continued signs of slowing growth in Europe.

Intel rose more than 4 percent after the technology firm reported an upbeat outlook for 2015 revenue and raised its dividend. The California-based company has benefited from a stabilizing personal computer market.

In the morning, the Philly Fed Index posted 40.8 for November, more than double the expected 18.3 and the highest since December 1993. Any reading above zero indicates expansion in the region’s manufacturing. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware.

Existing home sales hit 5.26 million and leading indicators gained 0.9 percent, both beating expectations for October.

Chinese e-commerce giant Alibaba sells its first-ever bond on Thursday, a jumbo trade expected to be around $8 billion in size and could extend to $10 billion. With pricing expected this afternoon, the bond offering comes just two months after the company’s record IPO.

In U.S. retail, Best Buy and Michaels posted results for the third quarter that beat expectations. Household goods retailer Williams-Sonoma earnings beat estimates.

The Security and Exchange Commission suspended trading in four microcap companies touting development of Ebola-related treatments or services, citing a lack of publicly available information about their operations.

The companies—Bravo Enterprises, Immunotech Laboratories, Myriad Interactive Media and Wholehealth Products—were not able to be reached for comment.

Stocks had opened lower as lackluster domestic data failed to outweigh signs of a continuing negative trend overseas. Futures held earlier losses as U.S. weekly jobless claims fell more than expected at 291,000, with continuing claims the lowest since 2000. The Consumer Price Index for October was unchanged.

The minutes from the Federal Open Market Committee October meeting released on Wednesday sounded mostly dovish, as Fed members expressed concern for the global economy.

Friday:

Earnings: Foot Locker, Ann

News Sources:  CNN Money & CNBC