Did someone forget to tell the market the Holidays are over? The market rose slightly Monday in a very quiet trading day, with the SPY trading its fewest shares since the first trading day after Christmas. There was no major news to move the market, which perhaps can be viewed as good news with the Euro teetering on the brink. The light volume and eery feeling in the market are causing traders to trim risk, as it feels we could get a quick resolution in either direction of this ascending wedge pattern without much warning.
Perhaps investors are waiting for earnings season to begin in earnest before putting more money to work in this market. Alcoa (AA) unofficially kicked things off after the bell with a report that fell basically in line with estimates, and the stock is now unchanged following the announcement.
In Europe, "Merkozy" is still putting up a united front ahead of the next Euro summit in late January, but questions remain over the future of the currency. The Euro was at least able to halt its recent slide to 16-month lows, but the bounce was nothing to write home about. Bond yields continue to rise across the continent with no signs of abating. Investors will continue to keep a close eye on auctions the rest of the week.
Netflix (NFLX) remains on a tear, finishing the day up 13.8% on news that it would launch a service in the UK. The stock is up 36% in the last four trading days, finally squeezing shorts after its precipitous fall from $300+ to as low as $62 and change.
Apple (AAPL) looks to have put in a short-term top on this morning's Goldman Sachs (GS) upgrade. Google (GOOG) was the goat in tech today, falling 4.2% after a negative note issued in the pre-market by Susquehanna. The breakout pattern is now technically broken, but this is an example of why active traders tier in and out of trades to lock in profits and limit risk.
*DISCLOSURES: Evan Lazarus is short BIDU. Scott Redler is long SPY, CSCO, FSLR, GS, GOOG calls, JPM, OIH.
