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STTG Market Recap February 6, 2013
Posted by: Fund My Mutual Fund (IP Logged)
Date: February 6, 2013 08:42PM
Stocks were little changed Wednesday after very sharp moves the previous three sessions. Markets had initially gapped down which once again was in direct contrast to the previous day's action (a sharp move up) but buyers came in most of the morning and once the markets hit flat line they stayed in a narrow range. The S&P 500 added 0.05% while the NASDAQ dropped 0.10%.
Let's look at the long term charts today for the indexes. The S&P 500 remains in a superior position to the NASDAQ having surpassed fall 2012 highs and despite some increased volatility of late remaining firmly in its upward ascending channel.
The NASDAQ still is prone to a potentially bearish "head and shoulders" pattern which is strange considering the divergence versus the S&P 500. If we are nearing the end of this move in the coming days/weeks this lack of new high on NASDAQ might be something to look back upon as a tell.
While the S&P 500 is near highs of the year the back and forth action of late has worked off all overbought conditions using the NYSE Oscillator.
Crude oil which had potentially signaled a breakout failed completely and is now back down in the previous range it had occupied.
One name that stood out today with a potential CANSLIM "cup and handle" formation is Home Depot (HD).
Two high profile companies to note reported today; both faring poorly in after hours. First is Green Mountain Coffee Roasters (GMCR), a favorite of short sellers. However 2013 thus far has been a year of short squeezes and many of the most highly shorted names have squeezed shorts with vicious rallies. The stock was up 3% ahead of earnings but is down some 8%+ in after hours on guidance that is lacking - down to the $45 area.
Tech company Akamai (AKAM) is being hit to the tune of 15%+ in the after hours session down to the $35 range. Results came in light.
SentimenTrader.com had an interesting comment on bullish sentiment yesterday; while not a fine tune instrument it is helpful in the intermediate term. It shows almost everyone is on board to this rally. If permanent QE has not changed the world, this does not bode well for the next 1 and 6 months.
Stocks Discussed: HD, GMCR, AKAM,