Stock Report for July 22nd

Posted: July 23rd, 2013 at 6:44 pm

Although many believe criminal charges are in order, Steven Cohen founder of SAC Capital Advisors, has not been able to avoid accusations and will now be forced to deal with civil claims. The SEC announced late Friday afternoon that Cohen is subject to civil claims after he failed to “reasonably supervise” two senior people at SAC Capital who have been accused of engaging in criminal insider trading.

“Both portfolio managers provided information to Cohen indicating that they may have had access to inside information to support their trading,” the SEC said in a statement. “In each case, Cohen received highly suspicious information that should have caused any reasonable hedge fund manager in Cohen’s position to take prompt action to determine whether employees under his supervision were engaged in unlawful conduct and to prevent violations of the federal securities laws. Cohen failed to take reasonable steps to investigate and prevent such violations. ”

As one of the top 150 richest people on Earth and with the strong beliefs by many at SAC Capital that there is very little to build a case on it should be very interesting to see what happens moving forward.

Trading ranges on all major indexes have really tightened over the past few trading sessions but have managed to continue higher. The Dow Jones Industrial Average traded in a very narrow range of only 60 ending the day up a dismal 1.81 points to close at 15,545.55. Microsoft was the big winner on the Dow today trading up by nearly 2% closing at its day high. After suffering a significant sell off on Friday following a miss in earnings expectations. Clearly supported by its 200 day moving average shares have since bounced from its lows and Friday and closed fairly positively today.

The S&P 500 continued its rally which now sits at four days, adding 3.44 to close at 1,695.53, posting a record closing high. The S&P 500 is on pace for its best monthly gain since October 2011. And the Nasdaq advanced 12.77 points to finish at 3,600.39.

Gold has been on quite the terror after hitting as low as 1180.64 on June 28/2013 hitting its highest levels in almost a year after a 3% rally today. Once gold broke above $1,300 an ounce we say a rush of buying by funds and short covering by futures traders. Silver also jumped by 6%. During tomorrows Trading Room tune in for a review on these precious metals to get the inside look from expectations by John and Strath. Happy Trading!