Daily Wrap

DJIA -18.28 (-0.14%) to 13,096.31;S&P 500 -1.73 (-0.12%) to 1,418.10;NASDAQ -4.25 (-0.14%) to 2,985.91;

What did today’s action look like?  Picture a bowl.  Started roughly even for the day and immediately started to pull back into the lows of the day around 1pm EST.  While 1pm was the lows, between roughly 12:30 – 2:30 pm EST the S&P 500 based  and finally in the last hour rallied all the way back to positive territory finally closing slightly negative.

Looking at some stocks in the news we start with a name that proved to be a fantastic trade idea in Deckers Outdoor (DECK).  While yesterday we noted that many big retail names were lower on rumors that holiday sales were trending below estimates, today DECK gained over 9% on rumors that Ugg sales bucked the trend and were better than expected.

Toyota Motor Corp. (TM) put the 2009-10 recall debacle behind them by agreeing to pay over $1 billion to settle the class action lawsuit.  While that seems like negative news, TM gained 2.56% which shows that investors consider the resolution manageable and are more concerned with the fact that the case is in the rear view mirror.  Sorry, couldn’t resist.

Last name for tonight is Smith & Wesson Holding (SWHC) which gained over 3% on news that the board approved a $15 million stock buyback.  The company noted that the  purchase program will run from now until June 30th, 2013 and the purchases will be funded by cash and working capital.

As always you can visit the Event’s Calendar for the release of economic data, scheduled meetings and other news that could move the market.

According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: No Scheduled reports.

Today’s drop on the SPY pulled into a Fib confluence are and bounced.  The RSI was oversold but there was no notable positive divergence on the 60 minute chart’s MACD and I would normally think that is something we would see at a trade able swing (or larger) bottom.  Possibly in this news driven lower volume environment those rules go out the window but I prefer waiting for the higher confidence/probability patterns myself.