It was almost an illusion yesterday regarding the markets. The DJI, COMP and SPX all posted huge losses but it seemed buyers were making strong moves. While the macro markets gapped lower by a decent amount, buyers were actively entering in on tech names. FB was very bullish since the opening bell. SQ was another name that rallied strong.
While some names did falter and succumbed to the sellers, we did see strong pockets of buying. I actually saw more active buyers than sellers in the majority of stocks I looked at. So while the major markets were down, I saw stocks rally strong in some instances.
While they may still have finished in negative territory, the majority of those names that rallied closed near the highs of the day. That leads me to believe we can see a nice rally today. The final FOMC meeting for Janet Yellen could also help provide some froth.
Now that we have heard the SOTU and will get the FOMC announcement this afternoon, that could be the catalyst to recover. I expect sellers to put up a fight today, but I also expect the buyers to win that battle.
Open Position: VFC LOW TWX SYNA SQ HLF STX LULU
Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV