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STTG Market Recap February 7, 2013
Posted by: Fund My Mutual Fund (IP Logged)
Date: February 7, 2013 08:55PM
Thursday the market looked quite vulnerable as heavy selling began the session and some support levels were broken but once again bears were stymied as buyers came into the market most of the afternoon lifting stocks well off their lows into the close. The S&P 500 fell 0.18% and the NASDAQ 0.11%. Apple dominated the headlines today as noted hedge fund manager David Einhorn went activist on the company in an attempt to get it to spend its massive cash hoard. More on that later.
The S&P 500 once again broke its 10 day moving average and looked set to make a run at week lows, but just as things were the darkest mid morning buyers came in. The index is now firmly in the middle of this ascending channel so if it continues to digest gains by going sideways bears could be in store for another beating.
As for the NASDAQ the 2012 highs served as support during its selloff.
Apple (AAPL) was the highlight of the regular session while LinkedIn (LNKD) starred in after hours. Today hedge fund manager David Einhorn said the company needs to use its cash in a more fruitful way, rather than hoarding it. Many have been surprised the company has not issued a special dividend and/or bought back shares after they have been in free fall for months.
Quote:The stock initially reacted only mildly but late in the day the company issued a statement in response to Einhorn's firm, and the stock shot up late. As you can see below it cleared the lower purple line which has been its range the two weeks, this *should* set the stage for a gap fill up to the top purple line at minimum. We'll see if it is that easy.
As for LinkedIn, it reported another stellar quarter after the bell, rising ~10% in the after hours session to an all time high.
Here are two charts from Dan Zanger's newsletter last nite.
Stocks Discussed: AAPL, GOOG, LNKD,