• February 07, 2012
• 06:48 | Ecstatic Plays CSTR ($58.90) Sold to Close 02C52.5 Feb 53 calls, at $6.50 +217%
• 06:45 | Ecstatic Plays CSTR ($59.30) Sold to Close 02C52.5 Feb 53 calls, at $7.00 +241%

We also held on to FFIV weekly calls over the weekend and took profits at a profit of +106%:

• February 07, 2012
• 07:42 | HappyTrading FFIV ($127.27) Sold to Close 0210C125 Feb 125 calls, at $3.20 +106%

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AAPL has been clawing its way higher, hitting a new all-time high of $269.75 today.  BVSN has been on a steep climb since end of January.  Its stock more than doubled in less than 2 weeks (from $20 to $44.5).  But, it appears that people finally took profits today, yanking BVSN down 17.36%!  Nevertheless, BVSN is still up more than +50% since the end of January.  If there’s no specific news, in a week or so, it may be time to look at BVSN again.  So, keep this one on your radar!  IDCC pre-announced a lower-than-expected Q1 revenue, sending its shares down 7.52%.  APC beat the expectations with its quarterly report; its shares gained +5.24%.

After the market, CERN posted a +30% jump in its quarterly profit; its shares popped +6.6%.  VCLK also delivered a strong quarter, pushing its shares up +3.28% this evening.  PNRA reported a nice quarter, but, announced that its CFO will be leaving the company; its shares dropped 2.82%.

The Dow was up +33.07 points; SPX added +2.72 points; Nasdaq gained +2.09 points:

XME (metals and mining) was down 1.5%. GLD (gold) and SLV (silver) popped higher today.  BTK (biotechs) slipped 1.42%.

SPX

SPX added +2.72 points to close at 1347.05.  Its daily MAs and MACD went up.

Nasdaq

Nasdaq climbed +2.09 points to close at 2904.08.  Its daily MAs were up slightly and the MACD was flat.

The market is once again progressing as how we had discussed on Sunday.  Dip-buyers have been eager to buy every dip, holding the market up.  On the other hand, profit-takers are getting more and more anxious to take some money off the table.  We saw that in GMCR today, down 4%.  CSTR also fell near the close, giving back $3 from its high of the day.  PCLN pulled back 1.4%.  Biotechs were mostly down today.  We have been staying in mostly cash, trading only a few positions and hitting big winners.  SPX, which got above 1349 today, has some resistance between 1350 and 1360.  CSCO’s earnings is coming up tomorrow after the market.  Let’s see how the market reacts to CSCO numbers.

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"For the new week, the market will be watching the Euro Summit with a special eye on the Greek debt deal. In addition, more earnings will pile in this week. To break higher, SPX will need to push above 1320. The market has been pushing higher since the beginning of the year. It took a rest last week, and, will likely need some good news from Europe to break out further. Energy stocks have been weak. Financials also took a break last week, likely waiting to hear from Europe on Greece."

Once again (somehow it feels like I’m saying that a lot lately!), things progressed as forecasted. On Monday, the market gapped lower on worries over Europe. On Tuesday, the market fought hard to fight back, and, we locked in our profits and a very profittable month of January. On Wednesday, good news came out of Europe and US payroll data provided more positive surprise. SPX closed above 1320. Thursday brought another pause, as the market awaits the latest unemployment report. But, we picked the right winners at the right time scoring +229% gain on GMCR and +109% profit on SINA. The market popped another leg up on Friday, as the unemployment rate fell again.

We just wrapped up an excellent month of Jauary, and, we started February with another solid week, filled with "happy" and "ecstatic" trades.

For the week, the Dow gained +201.77 points; SPX added +28.57 points; Nasdaq gained +89.11 points. Gold and oil were both down. At the time of this writing, Asian markets were mostly up. Here’s how the US market closed on Friday:

SPX

SPX added +19.36 points to close at 1344.9. Its daily MAs and MACD went up.

Nasdaq

Nasdaq gained +45.98 points to close at 2905.66. Its daily MAs and MACD climbed higher.

Wow, that was a strong week to start off February. All 3 major indices broke out! This market is testing the 2011 highs. For the new week…

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• 11:05 | HappyTrading FFIV ($124.65) Sold to Close 0210C125 Feb 125 calls, at $2.15 +39%
• 10:59 | Ecstatic Plays GS ($117.00) Sold to Close 02C115 Feb 115 calls, at $3.15 +26%
• 10:48 | Ecstatic Plays JOY ($94.85) Sold to Close 0210C95 Feb 95 calls, at $1.73 +19%
• 10:47 | Ecstatic Plays GS ($117.10) Sold to Close 0210C115 Feb 115 calls, at $3.25 +30%
• 07:11 | HappyTrading APC ($82.50) Sold to Close 02C82.5 Feb 83 calls, at $1.90 +6%
• 07:01 | HappyTrading BIDU ($134.60) Sold to Close 0210C130 Feb 130 calls, at $5.75 +85%
• 06:53 | Ecstatic Plays FSLR ($45.60) Sold to Close 0210C43 Feb 43 calls, at $3.17 +51%
• 09:33 | HappyTrading GS ($113.50) Sold to Close 02C115 Feb 115 calls, at $2.31 +13%
• 06:44 | HappyTrading GMCR ($66.20) Sold to Close 0203C55 Feb 55 calls, at $11.20 +220%
• 06:42 | HappyTrading GMCR ($66.50) Sold to Close 0203C55 Feb 55 calls, at $11.50 +229%
• 09:43 | Ecstatic Plays SINA ($74.30) Sold to Close 0203C70 Feb 70 calls, at $4.50 +109%
• 09:37 | Ecstatic Plays SINA ($73.75) Sold to Close 0203C70 Feb 70 calls, at $4.20 +95%
• 09:58 | Ecstatic Plays NFLX ($118.80) Sold to Close 0203P120 Feb 120 put, at $4.00 +21%
• 10:34 | HappyTrading SINA ($70.15) Sold to Close 0203C70 Feb 70 calls, at $2.75 +2%
• 09:26 | HappyTrading CRM ($117.20) Sold to Close 0203C115 Feb 115 calls, at $3.50 -4%
• 09:24 | Ecstatic Plays CRM ($117.20) Sold to Close 0203C115 Feb 115 calls, at $3.50 +4%
• 08:11 | HappyTrading AAPL ($452.70) Sold to Close 0203C450 Feb 450 calls, at $5.70 +37%
• 07:20 | HappyTrading AAPL ($449.70) Sold to Close 0203C445 Feb 445 calls, at $7.20 +37%
• 07:14 | HappyTrading POT ($46.65) Sold to Close 02C45 Feb 45 calls, at $2.42 +19%
• 07:01 | HappyTrading AAPL ($448.00) Sold to Close 0203C445 Feb 445 calls, at $6.10 +16%

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As Bagger Vance mentioned in his article, this market seems to be near-term overbought.  Market indices are revisiting 2011 highs.  Europe is still trying to reconstruct Greek debt.  I would not be surprised if we see some profit-taking soon.  We’ll take a closer look at where the markets stand tonight in my weekly Market Forecast.

Hope you’re enjoying your weekend, and your profits from this week!  Stay tuned, I’ll be back later this evening…

Happy Sunday and HappyTrading! ™

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• February 01, 2012
• 09:43 | Ecstatic Plays SINA ($74.30) Sold to Close 0203C70 Feb 70 calls, at $4.50 +109%
• 09:37 | Ecstatic Plays SINA ($73.75) Sold to Close 0203C70 Feb 70 calls, at $4.20 +95%
• 07:22 | Ecstatic Plays SINA ($72.20) Bought to Open 0203C70 Feb 70 calls, at $2.15

ZNGA shares flew up almost +17% on Facebook’s IPO news.  LNKD gained +6.37%.

Yesterday morning, WHR and MDVN made huge moves up, with WHR delivering a strong quarter and MDVN producing nice results with its prostate cancer drug.  WHR shares jumped $10 in the past 2 days, while MDVN vaulted $15!  MDVN may be a bit toppy now, but, WHR still has plenty of room to run.  WHR could run to $75 before hitting solid resistance.  VRTX also popped on news of FDA approval for its cystic fibrosis drug.  VRTX is up about +10% in the past few days.

AMZN sank as low as $172 (from $195) as it missed its earnings estimate.  It recovered partially to close at nearly $182 today.  GMCR jumped almost +24% today after reporting a better-than-expected quarter.  We have been sitting on the weekly 55 calls for GMCR since Monday, and, cashed them out this morning at nearly the day high with a profit of +229%:

• 06:44 | HappyTrading GMCR ($66.20) Sold to Close 0203C55 Feb 55 calls, at $11.20 +220%
• 06:42 | HappyTrading GMCR ($66.50) Sold to Close 0203C55 Feb 55 calls, at $11.50 +229%

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After finishing off a very nice January, we are starting February with a couple of strong trades again!

This morning, MA reported a strong quarter and pushed its shares up +6.7%.  V rose along, up +3.46%.  CME saw its 4Q profit soar and planned to boost dividend.  Its shares pop +8.36%.  ICE seemed to have benefitted from the news, adding +4.32%.

The Dow was down 11.05 points; SPX added +1.45 points; Nasdaq gained +11.41 points:

BTK (biotech) was up +1.49%.  Both GLD (gold) and SLV (silver) pushed higher.  XME (metals and mining) added +1.44%.  OIH (oil services) bounced +1.47%.

SPX

SPX added +1.45 points to close at 1325.54.  Its daily MAs were up slightly, but, the MACD was still flat.

Nasdaq

Nasdaq gained +11.41 points to close at 2859.58.  Its daily MAs and MACD went up.

The market has been gliding higher, but, still not quite getting the next leg up.  It seems to be a little hesistant ahead of the unemployment rate report tomorrow.  We locked in our profits just in time, to sit on mostly cash.  Let’s wait and see how the market reacts to the jobs report tomorrow morning.

Good night and HappyTrading! ™

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• 10:34 | HappyTrading SINA ($70.15) Sold to Close 0203C70 Feb 70 calls, at $2.75 +2%
• 09:26 | HappyTrading CRM ($117.20) Sold to Close 0203C115 Feb 115 calls, at $3.50 -4%
• 08:11 | HappyTrading AAPL ($452.70) Sold to Close 0203C450 Feb 450 calls, at $5.70 +37%
• 07:20 | HappyTrading AAPL ($449.70) Sold to Close 0203C445 Feb 445 calls, at $7.20 +37%
• 07:14 | HappyTrading POT ($46.65) Sold to Close 02C45 Feb 45 calls, at $2.42 +19%
• 07:01 | HappyTrading AAPL ($448.00) Sold to Close 0203C445 Feb 445 calls, at $6.10 +16%
• 12:22 | HappyTrading POT ($47.58) Sold to Close 02C45 Feb 45 calls, at $3.15 +54%
• 12:07 | HappyTrading POT ($47.47) Sold to Close 02C45 Feb 45 calls, at $3.05 +50%
• 07:17 | HappyTrading SINA ($62.35) Sold to Close 0203P62.5 Feb 63 put, at $2.20 -8%
• 08:33 | HappyTrading MA ($338.50) Sold to Close 0127P340 Jan 340 put, at $6.20 +59%
• 12:45 | HappyTrading GMCR ($51.30) Sold to Close 01C50 Jan 50 calls, at $1.85 +6%
• 09:58 | HappyTrading QCOM ($57.85) Sold to Close 01C55 Jan 55 calls, at $2.90 +64%
• 09:47 | HappyTrading QCOM ($57.37) Sold to Close 01C55 Jan 55 calls, at $2.40 +36%
• 12:31 | HappyTrading IBM ($178.80) Sold to Close 01P180 Jan 180 put, at $3.55 -19%
• 07:07 | HappyTrading BIIB ($117.80) Sold to Close 01C110 Jan 110 calls, at $8.00 +70%
• 09:32 | HappyTrading AMZN ($177.00) Sold to Close 01P175 Jan 175 put, at $2.05 -24%
• 11:03 | HappyTrading CTSH ($70.30) Sold to Close 01C70 Jan 70 calls, at $1.60 +23%
• 10:13 | HappyTrading GS ($98.65) Sold to Close 01C95 Jan 95 calls, at $5.05 +84%
• 11:23 | HappyTrading NFLX ($97.30) Sold to Close 0113C95 Jan 95 calls, at $5.50 +31%
• 07:21 | HappyTrading BIIB ($115.00) Sold to Close 01C110 Jan 110 calls, at $6.50 +38%
• 07:46 | HappyTrading UPS ($73.85) Sold to Close 01C72.5 Jan 73 calls, at $2.00 +33%
• 11:59 | HappyTrading GS ($96.40) Sold to Close 01C95 Jan 95 calls, at $4.00 +45%
• 11:03 | HappyTrading UPS ($74.80) Sold to Close 01C72.5 Jan 73 calls, at $2.74 +83%

Now, if you think that the above is impressive, take a look at our trades in Ecstatic Plays for January 2012, which were filled with triple-digit gainers:

• 09:58 | Ecstatic Plays NFLX ($118.80) Sold to Close 0203P120 Feb 120 put, at $4.00 +21%
• 09:24 | Ecstatic Plays CRM ($117.20) Sold to Close 0203C115 Feb 115 calls, at $3.50 +4%
• 10:35 | Ecstatic Plays NFLX ($117.30) Sold to Close 0127C115 Jan 115 calls, at $3.40 +39%
• 10:35 | Ecstatic Plays NFLX ($117.30) Sold to Close 0127C115 Jan 115 calls, at $3.40 +39%
• 06:53 | Ecstatic Plays MOS ($56.50) Sold to Close 0127C55 Jan 55 calls, at $1.59 +49%
• 06:50 | Ecstatic Plays BIDU ($126.20) Sold to Close 0127C125 Jan 125 calls, at $1.80 +43%
• 07:03 | Ecstatic Plays NFLX ($102.70) Sold to Close 97.5 Jan 98 calls, at $5.50 +147%
• 06:48 | Ecstatic Plays RVBD ($29.50) Sold to Close 01C27.5 Jan 28 calls, at $2.05 +105%
• 06:45 | Ecstatic Plays RVBD ($99.43) Sold to Close 01C27.5 Jan 28 calls, at $1.98 +98%
• 06:44 | Ecstatic Plays NFLX ($100.85) Sold to Close 01C97.5 Jan 98 calls, at $4.25 +91%
• 07:25 | Ecstatic Plays BIDU ($127.80) Sold to Close 01C130 Jan 130 calls, at $0.95 -50%
• 07:28 | Ecstatic Plays BIDU ($127.25) Sold to Close 0113C125 Jan 125 calls, at $3.45 +15%
• 10:27 | Ecstatic Plays FAS ($73.50) Sold to Close 0113C70 Jan 70 calls, at $4.10 +88%
• 07:08 | Ecstatic Plays FAS ($74.00) Sold to Close 0113C70 Jan 70 calls, at $4.50 +106%
• 08:14 | Ecstatic Plays FAS ($69.80) Sold to Close 0113C70 Jan 70 calls, at $2.00 -22%
• 09:57 | Ecstatic Plays NFLX ($76.38) Sold to Close 0106C75 Jan 75 calls, at $2.35 +114%
• 08:35 | Ecstatic Plays AAPL ($412.95) Sold to Close 0106C410 Jan 410 calls, at $4.60 +11%
• 11:58 | Ecstatic Plays GS ($96.40) Sold to Close 0106C95 Jan 95 calls, at $2.25 +108%
• 11:09 | Ecstatic Plays GS ($96.00) Sold to Close 0106C95 Jan 95 calls, at $2.05 +90%

With all of the published trades in January between both HappyTrading and Ecstatic Plays, there are only 5 trades that were in the negative, and the biggest loss was 50%.   It was certainly a very "happy" month. 

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If you’re still sitting on the sideline, you can probably consider tipping your toes back in.

Well, the market has basically be trading flat, consolidating in a tight range.  Besides earnings pops and drops, the broader market has been once again captivated by the development in fight against the financial crisis in Europe.

Here are some stocks in the news for today:

PPO dropped a whopping 30% on a downgrade!  NFLX fell more than 4% as BSkyB announced its movie-stream plan in the U.K.  After the market, AMZN tumbled 9% after a disppointing quarterly report.  BRCM delivered a solid quarter with a solid forecast; its shares rose about +2% in after-market trading.

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• January 26, 2012
• 10:35 | Ecstatic Plays NFLX ($117.30) Sold to Close 0127C115 Jan 115 calls, at $3.40 +39%
• 06:53 | Ecstatic Plays MOS ($56.50) Sold to Close 0127C55 Jan 55 calls, at $1.59 +49%
• 06:50 | Ecstatic Plays BIDU ($126.20) Sold to Close 0127C125 Jan 125 calls, at $1.80 +43%

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This morning, NFLX popped higher at open after delivering a strong quarter last night.  NFLX shares climbed to nearly $120/share before settling back down to close at $116.01, up +22.06% for the day.  SNDK sank 11.37% on softer forecast.  CTXS’s guidance was also light and its share shed 3.86%.  OXY reported a strong quarter, but its shares fell more than 3%.  Energy shares were mostly weak:  HES tumbled again, down 4.05%; APA lost 1.92%; IOC was down 3.41%; EOG dropped 1.93%.

After the market, RVBD tumbled 13.77% on weak outlook.  JNPR provided a similar story with a soft forecast for 1Q; its shares shed 8%.

The Dow was down 22.33 points; SPX slid 7.62 points; Nasdaq fell 13.03 points:

SOXX (semiconductors) dropped 1.08%.  OIH (oil services) fell 1.28%.  XME (metals and mining) slid 0.92%.  GLD (gold) and SLV (silver) were up.  UNG (natural gas) spiraled lowered by more than 5%.  XLF (financials) was in the red as well.

SPX

SPX fell 7.62 points to close at 1318.43.  Its daily MAs glided up, but, MACD was slightly down.

Nasdaq

Nasdaq dropped 13.03 points to close at 2805.28, still above 2800.  Its MACD was flat.

The market has climbed higher and higher since the beginning of the year.  Now, we are going into the last week of January.  Profit-taking seems to be finally kicking in.  Good earnings were not good enough for today; forecasts had to also be strong.  Further, the "punishment" for light forecasts were particularly strong.  It is perhaps suggesting that this market is overbought for the near-term.  Still, this market is deep into its new bullish phase.  We’ll get the latest GDP report tomorrow.  Let’s see how the market reacts to the numbers.  We are back into holding mostly cash.

Good night and HappyTrading! ™

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This morning, EMC, PLCM, VMW, and WDC all reported better-than-expected earnings.  EMC popped +7.25%; PLCM vaulted +13.19%; VMW jumped +7.74%; and WDC gained +6.25%.  We didn’t do much yesterday as it was Chinese New Year’s Day.  I did, however, picked up some PLCM Feb 17.5 calls, for myself, at $1.45 and sold them this morning $4.2, for an overnight +190% profit:

After the market, AAPL blew away all estimates and reported record numbers for iPads and iPhones.  It delivered a net profit of $13.06 billion, or $13.87 a share; analysts had expected $10.16 per share.  AAPL shares jumped +7.33% this evening.

The Dow was down 33.07 points; SPX slid 1.35 points; Nasdaq added +2.47 points:

BTK (biotechs) gained +1.38%.  Both SOXX (semiconductors) and FDN (internet) were slightly up.  USO (oil) and GLD (gold) were both down. 

SPX

SPX slid 1.35 points to close at 1314.65.  Its daily MAs went up, but, the MACD was flat.

Nasdaq

Nasdaq added +2.47 points to close at 2786.64.  Its MACD also flattened.

So, the market took a little rest.  But, earnings from tech companies continue to be strong.  AAPL’s blowout numbers should give tech stocks more fuel to continue the rally.  AAPL is trading just above $450 tonight.  In my opinion, $450 does not even begin to reflect how strong the quarter was.  We could see AAPL test $480 before taking a break.  Market indices are still toppy, perhaps that’s why AAPL did not jump as much as it could right away.

BTU’s earnings this morning missed the mark.  But, it clawed its way back up to close down only $0.65!  CLF and WLT continued to push higher.  Looks like a merger deal in the coal mining sector could really materialize soon.  We’ll keep our eyes on these.

SPX is struggling to break above 1320.  Until then, the market seems to be in a consolidation mode.

Good night and HappyTrading! ™

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Happy Chinese New Year!

恭禧發財 龍年行大運!

(Gong Xi Fa Cai; May your Year of the Dragon be filled with good fortunes!)

Last weekend, in my Market Forecast, I said,

"For the new week, earnings season is getting started.  Many financial firms will report their earnings, including GS, MS, BAC, WFC, and BLK.  Some tech belweathers come in on Thursday, including IBM, INTC, and GOOG.  Earnings from the financials early in the week could set a tone for the broader market.  Breaking above SPX 1300 would be a strong signal."

Monday was MLK Day and a market holiday.  On Tuesday, the market gapped up on encouraging economic data from China.  However, the market struggled to keep above SPX 1300.  Strong earnings from the semiconductor sector on Wednesday and Thursday finally pushed the market to rally higher.  We captured some really nice trades, including a +105% profit on RVBD and a +147% gain on NFLX.  The market was basically flat on Friday as GOOG’s earnings miss drew some caution and profit-taking.

We had another really nice week of trading with nearly all of the trades being profittable!

For the week, the Dow was up +299.42 points; SPX added +26.29 points; Nasdaq gained +76.03 points.  Gold climbed back up to nearly $1670/ounce.  Oil, on the other hand, remained weak, and closed just above $98/barrel.  Many of the Asian markets are closed to start the week for the Lunar New Year.  Let’s take a look at where the US market stood after Friday’s close:

SPX

On Friday, SPX was up +0.88 point to lcose at 1315.38.  Its daily MAs and MACd glided up.

Nasdaq

Nasdaq slid 1.63 points to close at 2786.7.  Its daily MAs and MACD were slightly higher.

This market has been glided higher since this year’s first trading day on 1/3/2012.  VIX barely closed above 18 on Friday!  For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 1/23/12.

Happy Chinese New Year!  It’s Year of the Dragon, the most revered and auspicious creatures of the Chinese Zodiacs!

So far, the market has been really strong to start this Year of the Dragon.  We had another really nice week of trading with nearly all of the trades in the GR$$N, with two overnight triple-digit gainers in Ecstatic Plays:

• 08:33 | HappyTrading MA ($338.50) Sold to Close 0127P340 Jan 340 put, at $6.20 +59%
• 07:03 | Ecstatic Plays NFLX ($102.70) Sold to Close 97.5 Jan 98 calls, at $5.50 +147%
• 06:48 | Ecstatic Plays RVBD ($29.50) Sold to Close 01C27.5 Jan 28 calls, at $2.05 +105%
• 06:45 | Ecstatic Plays RVBD ($99.43) Sold to Close 01C27.5 Jan 28 calls, at $1.98 +98%
• 06:44 | Ecstatic Plays NFLX ($100.85) Sold to Close 01C97.5 Jan 98 calls, at $4.25 +91%
• 12:45 | HappyTrading GMCR ($51.30) Sold to Close 01C50 Jan 50 calls, at $1.85 +6%
• 09:58 | HappyTrading QCOM ($57.85) Sold to Close 01C55 Jan 55 calls, at $2.90 +64%
• 07:25 | Ecstatic Plays BIDU ($127.80) Sold to Close 01C130 Jan 130 calls, at $0.95 -50%
• 09:47 | HappyTrading QCOM ($57.37) Sold to Close 01C55 Jan 55 calls, at $2.40 +36%

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The coming week will be a little unusual as many of the Asian markets will be closed, for at least 2 or 3 days, for the lunar new year.  On the US side, more earnings are pouring in, and, we’ll have the Fed’s rate decision, plus GDP at the end of the week.

I’ll be back later on this evening with my weekly Market Forecast.

恭禧發財

Gong Xi Fa Cai! (click on the link to learn what it means and how to say "Happy New Year" in Chinese) and HappyTrading!

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FFIV provided further fuel to the rally with its strong forecast.  FFIV shares were up +10.64% today.  We traded on FFIV earnings with RVBD, getting a quick overnight double:

• 06:48 | Ecstatic Plays RVBD ($29.50) Sold to Close 01C27.5 Jan 28 calls, at $2.05 +105%
• 06:45 | Ecstatic Plays RVBD ($99.43) Sold to Close 01C27.5 Jan 28 calls, at $1.98 +98%

In addition, we added calls on NFLX and scored a +147% overnight profit:

• 07:03 | Ecstatic Plays NFLX ($102.70) Sold to Close 97.5 Jan 98 calls, at $5.50 +147%
• 06:44 | Ecstatic Plays NFLX ($100.85) Sold to Close 01C97.5 Jan 98 calls, at $4.25 +91%

NFLX was up +5% today.

For myself, I add some CRM Jan 105 calls at $2.6 and sold them in the morning at $10.75 (day high) for a +313% gain:

CRM jumped +6.32%.

After the market today, 4 big tech companies reported:  GOOG, MSFT, INTC, and IBM.  Besides, GOOG, the other 3 reported well and went higher in after-hours trading.  In GOOG’s defense, the estimates were perhaps just too high.  "Earnings excluding items rose to $9.50 per share from $8.75 a share in the year-earlier period.  Net income climbed to $2.71 billion from $2.54 billion.  Net revenue, which excludes fees shared with partner web sites, jumped to $8.13 billion from $6.37 billion a year ago."  But, analysts were looking for earnings of $10.49 per share on revenue of $8.41 billion.  GOOG shares got hammered this evening, down 9%, almost $60!  BIDU shares fell 2% in sympathy.

AXP reported a solid quarter, but shares slid 2% on disappointing revenue.  COF net income fell sharply and its shares went along with its earnings, down 4.45%.  Both MA and V traded lower this evening.

The Dow was up +45.03 points; SPX added +6.46 points; Nasdaq gained +18.62 points:

SOXX (semiconductors) was up +1.86%.  FDN (internet) gained +2.07%.  GDX (gold miners) lost 2.05%.  XLF (financials) was up +0.93%.

SPX

SPX added +6.46 points to close at 1314.5.  Its daily MAs and MACD glided up.

Nasdaq

Nasdaq gained +18.62 points to close at 2788.33.  Its daily MAs and MACD also went higher.

Looking back now, it is more apparent that the market has been on a steady climb since mid December.  Certainly, with all the worries and headlines on Europe, it did not "feel" that way until the New Year.  VIX closed below 20 today, its lowest level since July 2011!  Still the market technicals are toppy.  But, buyers just kept on coming in.  Perhaps there’s still too much money on the sideline?  We don’t argue with the market, so, we are still trading the upside carefully and cashing in on profits as the market pops another leg higher.  However, it does feel like the market could use a quick pullback.  With MSFT, INTC, and IBM all reported well, we may see SPX test 1320-1325 tomorrow.  But, that’s the closest resistance and should induce some profit-taking.  We locked in a lot of profits today and are back in cash.  Tomorrow is options expiration day for January.  We could see a volatile day.

Good night and HappyTrading! ™

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