Tuesday closed the day green across the broader markets on very light volume. The lift erased the losses from Friday’s drop. Although the volume is about 60% of what it was on Friday and that still tells us buyers are on the sidelines. The day had a very narrow range that was waiting on Apple earnings after the bell. Apple is trading up 5+% on a very strong earnings report, YHOO and GILD are off 2+%, after the earnings releases. Gold traded up $3.30 to $1139.10 an ounce and oil traded higher by 78 cents to $83.91 a barrel.
Apple pushed the Nasdaq futures up 17 points, big move. The S&P 500 futures (ES) moved just 3 points and that will leave the market with a very split opening. Apple came through basically but will it be another sell the news events or carry through for the market into new highs on the year. Lack of follow through is not likely to be well received on the market and the 5+% pullback would come sooner rather than later. The market has waited on a catalyst to move and if these earnings are not seeing follow through then the sell the news option is likely. However, the past few years higher ground has followed good earnings in Q1 so keep that in mind. The early earnings are setting a pretty good tone for the market and now a move to continue needs to come.
Looking for a big gap and we’ll be very cautious on fading it. Be patient to see if the market follows the Nasdaq with this move higher. If we don’t a setup will come and let us on board, missing the top won’t be the only setup that comes for us. Last weeks highs should be watched for a break and volume to follow it through. Without that we are looking for a pullback and a move lower.
Economic data for the week (underlined means more likely to be a mkt mover) Wednesday 10:30 Crude Oil Inventories. Thursday 8:30 PPI, 8:30 Unemployment Claims, 8:30 Core PPI, 10:00 Existing Home Sales, 10:00 HPI, 10:30 Natural Gas. Friday 8:30 Core Durable Goods Orders, 8:30 Durable Goods Orders, 10:00 New Home Sales. Saturday IMF meetings (Greece concerns likely to be a focus).
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market MO, T, ATMI, BA, GENZ, KEY, MCD, MS, STJ, TIN, UTX, WFC and after the bell AFFX, AMGN, CMG, EBAY, FNF, ISIL, MEE, NFLX, NTGR, NE, NVLS, PLCM, QCOM, SNDK, SBUX, TER. Thursday pre market ALK, ABC, BG, CAL, CY, FITB, F, ESI, LLL, MAR, NOK, NUE, BTU, PENN, PEP, PNC, PFS, RS, LUV, SU, TASR, TRA, UNP, VZ, WSO, ZMH and after the bell AMZN, AXP, COF, CAKE, DECK, IGT, LSCC, MSCC, OSIP, PMCS, RMBS, STMP, STM. Friday pre market CMS, HON, IR, SLB, TRV, XRX and nothing after the bell.
ES (S&P 500 e-mini) Wednesday’s pivot 1202.75, weekly pivot 1194.50. Intraday support: 1202.50, 1199.25, 1195.75, 1192.75, 1189.50, 1185.25, 1181-1179.75. Resistance: 1210.50-1211, 1214.75, 1218.75, 1219-1219.50, 1222, 1225, 1229.50
