MONDAY 4/28/14; Russia Sanctions

The New Zealand stock exchange is delayed from opening to begin the new week of trading due to a “system issue.” Trading is halted at 10 AM local time and trading resumes fifteen minutes later. The operator of the exchange, NZX Ltd, provides no further comment. The computer glitches, so-called fat finger trades, system issues and mini flash crashes continue plaguing global markets. Aussie dollar 0.9270.

The dollar/yen remains steady at 102.20. NIKK -1%. Japan March retail sales are very robust mainly due to increased spending ahead of the tax hike. 





[Text is Redacted: Purchase April 2014-04 to Read the Complete Chronology]

BA and GS are laggards today losing -1.3% and -1.1%, respectively. The utilities close at 6-1/2 year highs breaking out to new all-time highs. UTIL gains +0.5% to 555. Traders and investors flock to utilities for safety and a dividend creating a parabolic move and mini-bubble in utes. AAPL rallies nearly 4% as traders embrace a $17 billion bond sale strategy. GOOGL drops under its 200-day MA for the first time since November but recovers to close above at 523 flat on the day. TWTR loses -2.1% with earnings on tap tomorrow. BBY is a big winner +4.8%. POM +5.7%. ROP +6.5%. NEM -4%. ABX -3%.

After the closing bell, BWLD bounces +5.3% after beating on earnings. Container company TCS drops -5.7% after posting weaker results. HLF bounces +3% with a strong EPS beat and slight beat on top line sales. Guidance is lowered but the overall guidance for the year is better. Herbalife terminates the dividend to increase the buyback which pumps the stock price higher. GOGO drops -25% on news that T and HON are teaming-up to provide an in-flight Internet service. Travelers say that GOGO is too slow and welcome the competition.

The recovery rally emboldens the bulls who remain optimistic continuing to expect the SPX above 1900 and 2000 later this year. The VIX finishes under 14 after spiking to 15.28 today verifying the ongoing trader complacency. April began at SPX 1872.34 so price is playing around this level as the month ends on Wednesday. A pro-Ukraine peaceful demonstration occurs in Donetsk, Ukraine. Citizens simply want a united country in peace. They have emotional ties to Russia but at the same time do not want to be under dictatorial control.