Daily Wrap
DJIA -44.23 (-0.32%) to 13,910.19; S&P 500 -5.89 (-0.39%) to 1,501.95; NASDAQ -11.35 (-0.36%) to 3,142.31
Today the markets moved lower and more decisively so compared to that other down day this. What was also interesting is that the Small Caps lead the way down and generally I like to see the Small Caps lead (along with the Techs if I can get them). This still has to be taken in stride based on the current trend in place but the recent action definitely does highlight the need for a consolidation as I have been calling for and also that the market will face increased apprehension as we move into higher levels.
In the news today was Chesapeake (CHK) which announced yesterday after the close that their CEO Aubrey McClendon will be stepping down. This is news that is seems many on Wall Street have been waiting for as CHK closed up over 6%. CHK closed off the highs and below the open but overall CHK looks like it can target higher levels and some consolidating before another move would be welcome by me.
Moving in the opposite direction of CHK today was Research in Motion (RIMM), which closed down over 12% on what seems to be a sell the news style event with the release of BB10 and two new BB10 phones. The company also announced that they will be changing their name to Blackberry and symbol to “BBRY“.
Also making news today and being a bright spot for the Dow on this down day was Beoing (BA) which reported earnings and guidance that beat analysts expectations. BA only gained 1.28% on the announcement but could be building a pattern to eventually breakout to higher levels. It is one to watch.
Amazon (AMZN) has had an interesting few days after seeing a sell off into earnings last night which then did miss analyst expectations but then many analysts came out and raised their price targets which took AMZN right back up in today’s trading to the tune of 4.77%. AMZN is definitely interesting and you don’t need me, or you shouldn’t, that this name cane really move. AMZN could be carving out a pattern/consolidation that will take the stock toward and above $300. I want to see a few more days trading and I will follow with charts. As a reminder that you can review the list I compile each day as well as an archive of past days in the Upgrades/Downgrades section.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: MO, AET, DOW, MA, VIAB, CL, D, MJN, NDAQ, OXY, PCAR, PBI, PHM, R, SHW, HSY, TMO, TWC, XEL, WHR, CNX, ZMH, IVZ, UPS
The focus is and should continue to be the earnings reporting coming out and what projections/forecasts we get for the year ahead along with data regarding the economy. In many ways the picture has been mixed with good recent Unemployment data but also some weak GDP and consumer confidence numbers.
The futures are slightly down after the close but are still right where I would define support. I have been looking for a pullback/consolidation and always in the light that the Bull need that. If the markets are allowed to continue to drift without proper backing and filling, you get to levels that cannot be supported and can pass the torch to the Bears. Up or down, I just trade the charts but if you know which one is in charge you can often start to play out the likely scenarios in your head and with that plan your able to act when an opportunity presents itself. For now I will be looking at this decline for an opportunity to trade on the long side. it may be right here or it maybe be at the 20 day SMA or the previous breakout of $1475ish but the intraday charts will tell the story.
