The markets opened sharply higher on the day. Positive economic news out of China coupled with Fiscal Cliff optimism did the trick. This extended a run in the markets from a low on November 16th, 2012. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) had been trading at $134.70 on this date but has since rallied to the highs today of $142.92.
This level hit today coincided with a major gap fill going back to November 6th, 2012. Other proprietary PPT Methodology calculations confirm this as a near term high on the market. Since the gap higher, the markets have fallen back to the flat line. Many stocks have rallied significantly and are now ready to pull back. I will lay them out below.
1. Amazon.com, Inc. (NASDAQ:AMZN) has surged from a low of $218.18 to a high today of $254.16 in two weeks. This is a monster move with no significant pull backs. A pull back will occur into the daily 50 moving average at $242.00.
2. Google Inc (NASDAQ:GOOG) has also seen a major price surge as today it slammed into the 50 moving average on the daily chart. No sooner did it hit this level, the stock began to pull back. It is likely the stock will continue to pull back for a week into the $678.00 level. The stock hit a high of $705.89 today.
3. While most investors and analysts on Wall Street are loving Lowe’s Companies, Inc. (NYSE:LOW), I tend to go the opposite way. The stock has been ripping higher of late due to Superstorm Sandy and the mess it caused. It is showing signs of being toppy at this point after already factoring in the rebuild. A near term pull back is beginning and should take the stock down about 10%.
Gareth Soloway
InTheMoneyStocks
