The market has been really volatile. On Monday, things opened higher, but, the mood quickly turned sour over uncertainties in the Italian elections. In the last hour of trading, the market plummet. Weakness remained on Tuesday morning and SPX went down to 1485. But, buyers rushed back in. Fed Chairman Bernanke’s testimony over the past two days further confirmed his stimulus policy to the markets. Stocks started to bounce on Tuesday afternoon and really pushed things back up today! SPX finished the day at 1515.99. That’s a 30-point swing in one-and-a-half days!
AAPL remained volatile, but, weak. The investors conference was basically a "non"-event! We did catch a few nice quick trades on AAPL, including a nice +88% profit on the 450 calls. I think over the new few days AAPL will start to turn and we could see a much bigger bounce on AAPL. We locked in some nice profits over the past few days:
GOOG continues to show tremendous strength and remained near the $800 mark. LNKD got a big pop today as an analyst pumped the price target to $200. LNKD recorded a new all-time high at $169.85 and closed at 168.55, up +6.83%.
Agriculture stocks bounced today: CF +1.86%; AGU +3.65%; MOS +3.19%. JOY jumped +5.82% after beating its earnings estimates. CAT gained +2.56%, while CMI added +2.11%.
The Dow was up +175.24 points; SPX added +19.05 points; Nasdaq gained +32.61 points:
SOXX (semiconductors) added +1.56%. BTK (biotechs) popped nearly +2%. XLE (energy) bounced +1.53%. XLF (financials) gained +1.56%.
SPX added +19.05 points to close at 1515.99. It closed above its daily MAs. The MACD was flat.
Nasdaq gained +32.61 points to close at 3162.26. Its MACD also flattened.
The Dow is now back above 14,000. It not only erased the loss from Monday; it is now up for the week. We should see some consolidation from here, but, it does seem like there are more buyers on the sideline waiting to jump in. Techs remain weaker than the broader market. Financials and energies are still the leading sectors. Asian markets are taking cues from the US this evening, trading mostly higher. As discussed in the Market Forecast this weekend, SPX still needs to break that 1520 to push higher. We may see a "stock-picking" market over the next couple of days, as the market consolidates.
Good night and HappyTrading! ™