Tuesday closed the day on the highs after a very weak opening. Volume moved with the advance and put in a heavier day over Monday’s participation. The VIX closed on the days low at 23.93 (also the 200dma) and the TRIN closed at .80 bullish on the day. The A/D and U/D lines closed on the highs. Gold closed up $10.10 to $1992 and oil also rallied to close up 62 cents to $77.52 a barrel.
After the bell AAPL traded higher off earnings, VMW, SLM and BSX joined Apple in the earnings rally. Stocks trading lower off earnings were YHO, JNPR, STX, GILD. Futures had an initial reaction to Apple, but they’ve settled in now. Apple accounts for 20% of the weight on the Nasdaq 100 so it really does matter. As Apple goes so does the market is a little overstated, but certainly worth paying attention too. The markets lift recovered most of Friday’s drop leaving us right back in last weeks range.
Into Wednesday the Nas 100 and Nas Composite is getting very close to the 200dma and 50dma. The SPX is nearing the 50dma, the Dow did test the 50dma today. The market has to continue into Wednesday, a sell off on good news out of AAPL would be a little painful to the market. The Fed Chairman testifies in the afternoon and that is going to be closely monitored and probably stall the market in the morning waiting on him to testify. Earnings are likely to provide an opening moving then we could see the market park and wait on Bernanke.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 10:30 Crude Oil Inventories, 2:00 Fed Chairman Bernanke Testifies,. Thursday 8:30 Unemployment Claims, 9:30 Fed Chairman Bernanke Testifies, 10:00 Existing Home Sales, , 10:00 CB Leading Index, 10:00 HPI m/m, 10:30 Natural Gas Storage. Friday nothing due out.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market MO, BLK, KO, ETN, EMC, GENZ, MS, OSTK, TXT, UTX, LCC, USB, WFC and after the bell ADS, AMLN, BIDU, CA, EBAY, FFIV, ISIL, ISRG, NFLX, NVEC, QCOM, SBUX, XLNX. Thursday pre market MMM, ALK, T, CAT, CAL, CY, LLY, FITB, JBLU, KEY, NOK, NUE, OXPS, PENN, STJ, HOT, STI, TRAD, TRV, UNP, UPS, WSO, XRX, ZMH and after the bell AMZN, AXP, COF, CAKE, CMG, CYMI, DECK, ETFC, FLEX, HGSI, KLAC, LSCC, MSCC, MSFT, MOS, NCR, OSIP, PMCS, QLGC, RMBS, SNDK, STM, VASC. Friday pre market F, GAP, HON, MCD, R, SLB, TROW, TASR, VZ, and after the bell nothing due out.
COMPX (Nasdaq Composite) closed +24.26 at 2222.49. Support: 2184.31, 2160.83, 2137.35, 2103.92. Resistance: 2240.13dma-2256.95, 2281.15, 2298.21, 2341.11
