PCLN Stock Jumps as the Market Ends Mixed
February 24, 2011 | Comments Off
The NASDAQ rebounds from recent selling while NYSE indexes fall in light trade
Jobless claims dropped much more than expected fueling futures to rally off session lows and power a buying surge at the open. Buying continued to about 10:30 when the buying interest began to fade. Volume was running lower through the day and it was noticable on the rise during the morning part of the session. Early afternoon trading brought the NASDAQ to the lows of the session, but support quickly took hold pushing the market back to the morning highs of the day. But, the star of the day was the action in crude oil as the commodity erased its gains and fell to the lows of the session. A mediocre day with support at the 50 day moving average for the NASDAQ and despite the fall in crude the lack of push by the market is very telling here.
Perhaps a surprise the number of Bulls dropped from lofty levels to 37% while the Bears jumped to 36%. It has been awhile since the number of Bulls were in the 30s. The last time was on September the 2nd the day after we saw the market follow through on big price gains and volume. Remember, Big Wave Trading was on top of the market rally beginning of September. We even notified all previous members of the coming rally and gave them a discount to take advantage of a great opportnity to make money.
Leading Stocks Like AAPL Get Hit Hard in Heavy Volume Selling
February 23, 2011 | Comments Off
The wave of anti-government demonstrations moved is way into Libya over the weekend causing havoc amongst equity markets. Even better than expected Consumer Confidence figures as well as Richmond Fed Manufacturing couldn’t entice buyers to prop up the market. Heavy volume sellers were in our stock market leaders today showing institutions were dumping stocks, the best performers. Today, the market went into correction mode with a big percentage decline on higher volume. When the likes of NFLX stock are AAPL stock taking beatings you must stand up and take notice. While no one knows if we truly have seen the top the signs are pointing to a great possibility we may be entering into a bigger than normal correction.
The uptrend beginning on September the first of 2010 is officially over. We could see the market rebound over the next few days, but today’s action amongst the market leaders highlights the fragile state this market is in at the moment. Bulls will argue today was a buying opportunity and others will say we are in need of a correction the fact of the matter is raising cash and going on the sidelines isn’t a bad place to go. Wait out the storm and let the charts setup again to go long. However, if you are inclined to go short we are actively on the prowl to see if we do see shorts setup.
AAPL Stock Finds Support, but the Market Falls in Fast Trade
February 23, 2011 | Comments Off
For the second straight day sellers took to the market knocking stocks lower in fast trade. Wednesday’s market was able to see intraday support off the lows as the NASDAQ hit its 50 day moving average. The intraday rally did faed into the close, but stocks did find support at the lows. Volume ran higher on the day as the NASDAQ suffered its second heavy volume session in a row. Last night’s commentary indicated this market was in correction mode and today’s market action confirmed it. Despite the lift off the intraday lows, the market remains on shaky ground.
AAPL was able to find support at its 50 day moving average. The stock has been hit hard over rumors of Steve Jobs’ health, but the stock has been on a tear since the March 2009 lows. A bounce here in the stock would not come as a surprise, but we’ll need to see the stock work off the heavy volume selling before any meaningful move can happen in the stock.
Stock market trading isn’t for the weary, not is it for the over emotional human being. The past two days have been quite ugly and the temptation to call a top and go all in short is all too tempting. Decision making on gut feel is a recipe for disaster. We could see this market turn on a dime shake you out of your shorts only to collapse back lower. There is a proper way to buy and sell stocks, but none of which should be done by gut feel. Big Wave Trading helps teach those who want to be successful and not those who want to make “calls.”
AAPL Continues to Hit New Highs as the Market Rebounds in Fast Trade
February 17, 2011 | Comments Off
Small cap stocks jump as the Russell 2000 leaps more than 1% as volume jumps across the board. The NASDAQ gained 76bps on volume nearly 14% higher than yesterday’s level led by DELL stock after better than expected earnings. Better than expected housing numbers and tame PPI figures helped get the market off on the right foot as the market waited on the release of the FOMC meeting minutes. There wasn’t much fanfare after the release of the minutes, the market was able to hold its ground and close near the upper range of the day. Today’s action did help calm down yesterday’s distribution day, but the number of distribution days remains elevated. Not a bad way for the market to follow up a distribution day.
Market leaders continue to digest their recent gains, but AAPL stock continues to hit new highs. Hitting new highs on lighter than normal volume would be a concern. However, AAPL hit a new high today in above average volume showing instiutions were willing to step up and accumulate the stock. There isn’t much to complain about the stock here and it is precisely the kind of action we want to see out of our leaders.
Stocks Gain Despite Inflation News
February 17, 2011 | Comments Off
AAPL weighs down the market as trade slows
Early morning selling gave way to buyers despite AAPL stock performance after the National Enquirer posts a picture of Steve Jobs. Once again, another picture surfaced of Steve Jobs entering a cancer clinic and the stock sells off. The move in AAPL stock took away 3points from the NASDAQ, but by the close the index was able to close up 21bps. The Russell 2000 led the way finishing higher by 68bps, but volume dropped across the board showing institutions took a break from actively participating in the market. A good day for the market as this uptrend continues.
The market was blasted with a slew of economic data today, but the highlight was Consumer Inflation. Commodity prices continue to push higher and higher prices have crept into producer prices. Despite the government’s attempt to hide inflation consumers are feeling the pinch at the register. Most notably are cotton prices as the commodity is up more than 40% since the beginning of the year. Cotton hit an all-time high today finishing limit up. It is time to bring back competition for cotton, hemp! Hemp used to be a large part of the US agriculture product line. To lower cotton prices, it is time to present competition to the fold. I digress; the bottom line is inflation is beginning to take center stage.
Distribution Day Hits Wall Street as MSFT and ORCL Slump
February 15, 2011 | Comments Off
Stocks fall in heavier trade ahead of the release of the FOMC Meeting Minutes
The market falls back on heavier trade as the NASDAQ adds another distribution day to its count. Despite AAPL stock efforts the selling in ORCL stock and MSFT stock continue to weigh down the technology weighted index. Distribution days now stand at five and warrant a cautionary approach to the market in the coming days. Buyers were unable to lift the market after testing the morning low even during the final hour of trading. Volume rose more than eleven percent on the NYSE while volume rose 4% on the NASDAQ. Tuesday’s have been, as of late heavier trading days than Monday. Today’s volume figures did not come as as surprise. The uptrend remains in place, but with the elevated number of distribution days some caution is warranted.
Let’s not panic here, the market has overcome plenty of obstacles up to this point and for 5 distribution days for the NASDAQ is not too alarming. Weighing down this index are the likes of GOOG stock, MSFT stock, and CSCO stock. These technology giants are simply laggards weighing down an entire index. It would not come as a surprise for the market to regain its footing and march towards multi-year highs again. But, remember keep an eye on your backside and understand the ability to cut your losses and move towards cash.
NFLX Stock and NASDAQ Notch 52 Week Highs
February 14, 2011 | Comments Off
AAPL stock helps the cause as stocks close higher on lower trade
Volume drops across the board as the Dow closes in the red for the 2nd time in 3 days. NFLX stock and AAPL stock continue to power the NASDAQ as both continue to add to their gains. NFLX stock once again defy the shorts as the stock sports a 23% short interest ratio. Volume ran true to most Mondays as volume could not keep pace with Friday’s level. The media can blame the lack of volume on traders forgetting it was Valentine’s Day and did their shopping today. Kidding aside, there were a few other leaders acting well outside of NFLX stock and AAPL stock. Today was another positive day in the markets once again despite calls for a pull back.
Market pundits can’t help themselves to call a market top. And why not, the media loves to make folk heros out of those who get lucky and pick the “top.” Look at Doug Kass who said in July the market lows were in for the year. But, this is the same market pundit who continues to fight the market to short it! However, CNBC continues to parade Kass and others to provide an opinion on the market. Remember, opinions do not matter in this market whatsover. Price and volume action remains king.
The Market Stages Intraday Reversal as CSCO and MSFT Weigh the NASDAQ Down
February 11, 2011 | Comments Off
Buyers step up as leaders continue to shine
A better than expected jobless claims figure couldn’t help stem the selling pressure placed upon the market by CSCO stock. Panic set in very early on and the market appeared to be succumbing to the selling pressure. However, buyers stepped up just after 10 o’clock hour pushing the market to its high of the day. Many market pundits looked at the news out of Egypt as the reason for the lift in stocks, but you simply cannot deny the support shown by the market.
Leading stocks once again showed amazing strength as leaders such as BIDU stock and NFLX stock. PCLN stock is another market leader who has shown tremendous strength. We do have a new buy signal out of another market leader signaling this market may prove it has much more to go. We want to be on the market leaders and stick on them.
AAII sentiment survey saw the percentage of bulls drop below 50% and bears remaining below 30%. The level of bullishness has yet to bring down this market. Remember, the survey asks responders whether or not they believe the market will be higher 6 months out. To judge near-term bullishness is much more difficult and quite honestly a fruitless endeavor. Remember when Doug Kass called for the market top back in late fall? The “call” was incorrect and has cost those who have followed it money.
CSCO Earnings Disappoints as the NASDAQ Notches a Day of Distribution
February 9, 2011 | Comments Off
AAPL Stock Hits Another High as the NASDAQ Sees Heavier Volume Selling
Selling pressure hits the market, but the Dow notches its 8th straight day of gains thanks to a strong performance from DIS stock. DIS posted strong earnings after yesterday’s close boosting shares. Today’s focus was on the performance of CSCO’s earnings report. At the end of the day sellers had pushed the NASDAQ and the S&P 500 into distribution territory. Although the price decline wasn’t severe volume did jump 6% showing institutions were active in today’s market. The NASDAQ was able to find support at the day’s lows just before 3pm, but was just unable to recapture the days mid point. Leadership was able to separate themselves from the pack a good sign, but now the market is faced with 4 days of distribution on the NASDAQ.
The NASDAQ and NYSE Composite both sport 4 days worth of distribution. Despite the efforts out of BIDU stock, AAPL stock, and NFLX stock the index was unable to avoid the selling pressure. After reporting earnings CSCO stock is down more than 9.5% in after-hours trading. The stock had done well since its last earnings report recovering most of its losses, but now is retesting its 50 day moving average. CSCO stock does make up a good portion of the NASDAQ and will be drag on the index, but it is far from a leading stock. Look to see how the market reacts to its selling tomorrow, if we can see the overall market ignore the CSCO stock the better this market will be.
AAPL and NASDAQ hit 52 Week Highs
February 8, 2011 | Comments Off
Bears continue to be frustrated as the market hits new highs
Notching another 52 week high the NASDAQ added to Monday’s gains led by AAPL stock as volume volume rising across the board. AAPL the largest stock in the NASDAQ hit another new high as investors continue to rush to own the stock. The market was handed some good news from the NFIB Small Business Optimism and IBD/TIPP Economic Optimism indexes as both rose better than expected. The market appeared to be settling into a narrow range early on digesting recent gains. Buyers had other plans as late afternoon buying continued into the close. Another great day as the NASDAQ closed on its high of the day as volume creeps above Monday’s levels.
AAPL stock led the way on the NASDAQ followed by AMZN stock and QCOM stock. On the down side TEVA stock was hit hard after its earnings report this morning. The stock did find support intraday, but the loss was great enough to put pressure on the NASDAQ. The day was owned by AAPL and AMZN stocks with both putting in impressive days. While AAPL stock hit a new 52 week high, AMZN stock was able to recapture its 50 day moving average on above average volume. After earnings it appeared investors were fleeing AMZN stock, but buyers have come back supporting the stock. A very good sign for this market seeing the support for leading stocks.
