Daily Wrap
DJIA +39.55 (+0.30%) to 13,074.04; S&P 500 +4.66 (+0.33%) to 1,413.94; NASDAQ +15.57 (+0.52%) to 2,989.27;
The majority of today was spend on the positive side of the line but never all that much as we closed at highs for the day. The market remains in this sloppy consolidation between the 38 and 62% fibs. Along with the fibs we have the 50 Day MA as resistance and the 20 and 200 below as support.
As with many days i the past on both the up and down side, Apple Computers (AAPL) was a key focus for traders today. Last night I noted that long term investors with no position in AAPL could look to start an initial position around these levels in AAPL and today’s dip still has that bias. Ultimately I wouldn’t be surprised if AAPL made new lows below the previous $505 low but that would likely be divergent based on the current MACD and would likely just be setting u for a potential bottom. The risk in not starting a position is your stuck waiting for levels that everyone else is that never come as often stock like to bottom just above key levels people are waiting/watching for or by breaking below a key level to stop people out and then turn up. If it were me personally I would probably be leaning toward a 1/4, 1/5th position and would also sell an upside call against.
Another stock of the day but one I didn’t see getting too much attention was Starbucks (SBUX). This is a name we highlighted early in the morning (pre-open) on StockTwits and after a somewhat average open, this stock was off to the races closing at $53.70 up nearly 6%. If you like SBUX this could just be the beginning of the move with first $55.75 being a target and then $62. I would be using $49.50 or below yesterday’s low as a stop.
Akamai Technologies (AKAM) closed 9% higher after announcing a strategic alliance with AT&T (T). T will allow AKAM to use their network for AKAM’s CDN servers. Also closing higher, up over 8%, was Zynga (ZNGA) which applied for a gaming license in Nevada for real money games. Interesting.
The last stock of the day we will cover is Freeport-McMoRan (FCX). After announcing a takeover which sent the stock down roughly 5 points yesterday, many analysts piled on today with a slew of downgrades and and price targets ranging from $30-38. One thing I am watching is a 62% fib retracement level which comes in at $27.45. My initial work could be pointing to even lower levels but I will have to do mor work. In the meantime I want to see how FCX digests this recent near 20% drop.
There is a fair amount of Economic Data tomorrow after nothing today so instead of re-listing I will just provide the link to the section here. I will be updating the results as the number come out. Event’s Calendar
According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: KMG, BNS
Back to the S&P we remain between as the 38 and 62% fibs referenced above. Right now I don’t see as much opportunity in the index as there is in individual names like the ones we post on StockTwits (WSConsensus).
