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D&D Note

D&D Note (9-4-2012) ~ Small Caps Lead On The Day

D&D Note (9-4-2012)

September started out with stocks falling, but not all indexes finished lower on the day. In fact small cap stocks rallied through the day highlighted by the Russell 2000 (RUT) which ended the day up 1.24%. Large cap stocks (which the Dow is comprised of) got a 2:00pm bounce on rumors of news coming out of Europe, however when that news didn’t come the index gave back those gains but finished off the lows of the day.

Russell 2000 Chart for Today:

Dow Chart for Today:

The ol’ General, investors favorite mega cap stock, Apple (AAPL) helped lead the rally today after they announced their next event on September 12th hinting at the release of the highly anticipated iPhone 5. Shares ended up 1.46% closing at $674.97.

Apple Chart for Today:


Right now traders are grappling with historical trends. The month of September over the last 30 years has been the worst performing month for the S&P 500 index. However, on the other hand, during an election year with a sitting Democratic President the S&P 500 has been up on average 1.3% during September.

September 6th is when the ECB meets next and many expect Mario Draghi to announce a new bond buying program. A recent leak from a French official says Super Mario is considering 3-Year bond purchases opposed to long term notes. Although, whatever Mario decides will then be voted on by Germany, leading many to question the credibility of the ECB if they have to have Germany’s approval. An analogy for Americans would be if the State of New York had to sign off on any action the FED took.

Facebook (FB) slid in trading today after the underwriter Morgan Stanley (MS) cut their price target for the company. Shares hit a new intra day low of $17.55. At the close of trading a timely news piece came out saying Mark Zuckerberg won’t sell any shares for at least 12 months, that news helped lift the stock in after hours trading rising 1.81% leaving shares currently at $18.05.

The Dow (INDU) fell -54.90 points at -0.42%. The Nasdaq (COMP) gained 8.10 points at 0.26% thanks to Apple’s heavy weighting in the index. And the S&P 500 (SPX) lost -1.64 points at -0.12%.

Oil lost $1.17 to close at $95.30 a barrel.

Gold gained $8.40 to close at $1,696.00 an ounce.

The 10-Year Note rose pushing the yield down to 1.57%.


About ddinvestments

Trading Partner for D&D Investments


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