The market charged higher almost all day Wednesday, closing at its highest level since July. The Nasdaq was the strongest index, closing 1.5% higher, while the S&P gained 1.1%. Yesterday major US indices gapped up 1% but could not hold most of those gains. Today was a different story. After opening near flat stocks, buoyed by non-disastrous earnings by Goldman Sachs (GS), never looked back, breaking yesterday's highs without much of a pause.
The much-anticipated earnings report from Goldman Sachs (GS) was hardly impressive, barely meeting low expectations. Investment banking revenues fell 43%, and the reason for the EPS beat was lower compensation expense. Traders bid the stock slightly higher pre-market, but the response was much more enthusiastic after the opening bell. GS closed the day 6.8% higher.
Technically, the S&P move through yesterday's high of 1303 and now opens the door for a move to 1320-1340. I spoke about this level on Street signs back in December.
Amazon.com (AMZN) was a rock star today. We talked about $190 as the next stop, and it hit that level late in the day, finishing up 4.3%. Most didn't expect such a big move in one day, but now its time to take most of the position off.
Apple (AAPL) made new all-time highs and looks like it wants to continue to run farther into earnings. Someone is expecting a big quarter from AAPL, trying to sneak it higher without too many firework-type days.
Netflix (NFLX) absorbed the downgrade this morning and could knock on the $100+ door soon.
Google (GOOG) went positive and reversed. We will re-visit tomorrow ahead of earnings.
Research in Motion (RIMM) came back off the lows and held in OK, but chatter regarding Samsung was denied this morning, which was the catalyst for yesterday's move.
Microsoft (MSFT) hangs tough. It's holding above all moving averages and acts impressive.
Cisco Systems (CSCO) moves slowly but is working higher from the $19.00 pivot area. The next spot to watch is $20.48.
Priceline (PCLN) made a big move from yesterdays buy price of $485ish. I would sell some and trail some if you are long.
Baidu.com (BIDU) had a tough day today with the rest of tech rallying. We'll look at it again tomorrow, but right now it is not acting well.
First Solar (FSLR) flagged and then came back in play. Nice trigger above $41.50 today
Goldman Sachs (GS) ignited a move in the banks and barely took a breath all day, clearing the $106 resistance. The next major spot is $118ish.
JP Morgan (JPM), on the strength of GS, took back $35 level with a vengeance.
Oil Service ETF (OIH) is still acting better, I added to my position today. The next level to clear is $121.58. I’m in tier two long.
Wynn Resorts (WYNN) gave two more entries today 1) From negative to positive, and then 2) through $113.68. Great three-day trade.
Las Vegas Sands (LVS) and MGM Resorts (MGM) are still working higher.
Crocs (CROX) is almost in the gap and looks good for higher prices.
Visa (V) is at new highs, while MasterCard (MA) was a nice lower pivot buy.
If you are a trader you can’t complain about this action. Although volume has been light in 2012 and the action in the indices has at times been a bit lackluster intraday, stocks are moving and correlation is falling. When stocks show relative strength and weakness, it makes it much easier to trade.
Gold (GLD) and the Euro (FXE) were both up today, a divergence we’ve outlined since the first week of the year. Next major resistance in GLD is the downtrend that’s been intact from the highs of Summer- $163-$164. There is also a gap to fill in GLD.
*DISCLOSURES: Scott Redler is long SPY, OIH, XLF, QCOM, AAPL, WYNN, RIMM, CROX, FLSR, CSCO, NFLX, GOOG calls and VXX. Short DIA.
