Daily Wrap
DJIA +82.71 (+0.64%) to 13,034.49; S&P 500 +2.23 (+0.16%) to 1,409.28; NASDAQ -22.99 (-0.77%) to 2,973.70;
Today’s action was somehow boring and choppy all at the same time. While we had some moves back and forth it didn’t encompass the entire day and the other times the S&P 500 showed relatively tight action. More exciting was the Dow and Nasdaq which had moves more that 4 times the S&P although both closed within 1% of the previous day’s close.
Weighing on the Nasdaq today was Apple Computers (AAPL). More trading than news drove today’s action. I even saw a note our of Raymond James stating they believed today’s dip was not fundamental or based on fundamental developments and was just traders/trading. Frankly that’s what most of each days moves are so I don’t know what a note like that is meant to provide except some ease to their clients who are long. Other firms were out noting pullbacks are buying opportunities, Piper is one I can recall off the top of my head. One new note I did see this morning that I found curious was on 9to5mac.com and I don’t have the article handy but it stated that AAPL had removed the “two-per-customer” limit on iPhone 5’s and also had shipping in 2-4 days. That very well could be perceived as limited interest in the new product and possible a note that was circulated today. I think long term invests can look to AAPL and depending on your time frame and situation, using a dip like today to start a position is something I have no issue with. If AAPL did decide to make new lows, which is possible, they would likely be divergent based on the current set-up of indicators and just like the $505 bottom that had many looking for 500, it could be many waiting for a double bottom or new lows are left waiting.
Two stocks moving higher today and not receiving the notice they deserved due to AAPL was Citigroup (C) and Bank of America (BAC). BAC was breaking to new highs for 2012 and could ultimately look to target $11 in the short term which also happens to be the price target Stifel set on a recent upgrade. C has somewhat lagged and with the Pandit situation and not being exactly sure what their strategy is, I would rather step aside and play other financials names. There is a level over $38.50 for a breakout but right now again I am on the sidelines.
Another stock having a great day today was Nokia (NOK). NOK came up on a potential bottom scan of mine a while back and I never traded the name, that was certainly a mistake. Since then I had been looking for better opportunities/set-ups an never got a chance to get in. NOK should be a name that we can watch for a while if this is truly a turn around and today’s news of a partnership with China Mobile is certainly a step in the right direction.
Make sure to stop into the Event’s Calendar section to see what economic data is scheduled for today or to see the updated results. Event’s Calendar
According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: CMN, HRB, HITK, KFY, LAYN, LULU, MPR, MEI, SFD, TITN, TD, UTIW
The market has really just been consolidating since the recent closing high on 11/30 but it feels worse because of the dips on news, predominantly out of congress, and that shows the fear of the current situation and more importantly lack of clarity. The word entering this week was cautious and thus I remain. Below is the SPX Daily chart which is bouncing between the fibs (38 and 62) with MA support and resistance roughly matching each level.
