The market closed marginally higher Wednesday following President Obama’s pep talk last night, but many of the beaten-down sectors finally got a significant lift. After sloppy action last week, many pundits began thinking a top could be imminent, but the market is proving it can win ugly. Today the FOMC voted unanimously to keep QE2 and rates intact, as expected. After the bell, Netflix, Inc. (NFLX) once again came out with stellar earnings on lower costs, and is trading 7% higher to frustrate its legion of naysayers.
Cloud stocks showed their first sign of life after being sold off on F5 Networks, Inc. (FFIV) revised outlook. The fertilizers were extremely strong as well, with Potash/Corp. of Saskatchewan (POT), Monsanto Company (MON) and The Mosaic Company (MOS) looking poised to charge back to highs. Casinos stocks also started to perk up after being out frustrating traders looking for resolution over the last month or so. Las Vegas Sands Corp. (LVS) has the best pattern in the group. (VIDEO AFTER THE JUMP)
Oil stocks were also extremely strong, led by Halliburton Company (HAL) which posted an 8% gain. Microsoft Corporation, which we like as triple threat value/income/growth play, started to break out before pulling in slightly in the afternoon. Gold and silver also got their first meaningful bounce in weeks after testing support, and have some upside after this sizable pull-back.
*DISCLOSURE: Scott is long LVS, GLD; Short SPY.
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