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Joshua Hayes
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Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc., a Maui, Hawaii-based stock market advisory service. Hayes is a well-respected stock trader who combines fundamentals, technicals, psychology and money management to trade professionally for his personal,... More
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  • Obama's Economic Speech Fails To Inspire Buyers; AAPL Jumps

    A big jump in New Home sales failed to get the market going as the homebuilders sold off hard on the news. The talk of the street was AAPL earnings and the stock's big move on the day. Without AAPL the NASDAQ would have notched a day of distribution. The S&P 500 could not escape distribution settling down .4%. Even though the NASDAQ did not suffer the same fate as the S&P 500 it did give up almost all of the gains had at the open. Not typically something you want to see in an uptrend, but it isn't a gigantic red flag. In after-hours trading we had quite a few earnings moves setting up nicely in the morning. We are still without enough distribution days and negative price action to call the end of this uptrend. While we may be long in the tooth we don't have the proper signals telling us this is over.

    AAPL was an earnings winner as many were calling for an atrocious quarter from the technology giant. More earnings in the after-hours session will help set the tone tomorrow at the open. Earnings gaps have been a great way to play earnings season. Stocks must meet certain criteria before they can be considered, but they can be quite profitable.

    Homebuilders sold off in heavy volume and it comes to no surprise even with a big jump in new home sales. ITB and XHB are certainly struggling and while the housing data points to a positive outlook perhaps fundamentals truly are best at tops. In addition to ITB and XHB another key sector looks to be rolling back over and that is XLU. After rallying along with bonds (yields falling) yields raced higher today putting pressure on Utilities. Utilities are far from sexy, but along with Housing this sector is seeing quite a few headwinds.

    You'll find plenty top callers in this market. It has proven to be a fool's game trying to game a market top. Don't call tops and ride your winners.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 25 5:16 AM | Link | Comment!
  • End Of Day Selling Push The NASDAQ And S&P 500 To The Lows Of The Session

    Earnings season continues and the prevailing theme is for companies to beat on the bottom line, but fall short on top line growth. There are many things we can extrapolate, but in the end it won't help our bottom line. A big miss from the Richmond Manufacturing index highlights weakness in the Northeast manufacturing sector and the market reactive negatively to the news. Spending majority of the day near the lows of the session the NASDAQ pushed into new low territory just before the closing bell. Not the type of action you want to see from a price action stand point. The NASDAQ did post a day of distribution and has been piling on a few days here. It is something to keep an eye on despite this market remaining in an uptrend.

    Much will be made of AAPL's earnings release. At this time they have yet to release earnings and I'll make a note of them when they do report. The stock has been a drag on the entire market especially the NASDAQ yet it hasn't kept the NASDAQ from gaining nearing 19% YTD. I suspect a sharp rise in the stock will have many shorts running for the hills. Initial reaction to earnings: It appears AAPL beat estimates and its guidance is sort of inline. The reaction is positive at the moment, but the stock will need to clear some levels before any long signals are generated. Any positive news for AAPL will benefit the NASDAQ greatly and push the index higher. Stay tuned.

    The insane stock moves after earnings releases, makes it very difficult to hold into the report. If you do not have a sound process you will certainly lose your nerve during earnings season. If you hold an abnormally large position and are stuck it is likely your position size is too large. More often than not many traders simply do not understand risk management and adopt the "go big or go home" mentality. Unfortunately, this is not the type of approach you want in this market. The idea is to stay in the game for a very long time not just a few minutes. Make risk management a priority.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: AAPL, QQQ, DIA, SPY, IWM
    Jul 23 9:08 PM | Link | Comment!
  • S&P 500 Hits Another All-Time High

    Today was a quiet day in the Market as participants ease back into trading from the summer weekend. Existing home sales disappointed where by sales dropped 1.2% month-over-month. Clearly higher rates have put pressure on the housing market. Chicago Fed Activity index show a slight drop of .13, but who really follows this index anyway. The disappointing housing figures helped push the market higher. When there are no sellers it is quite easy to push the market higher with very little volume. Volume dropped from Friday's option expiry inflated figure, but we weren't really expecting volume to surge. The S&P 500 hit a new all-time high on small gains, but hey it is still a new high. Distribution really isn't hounding the market and we still no reason to call a top here. This market continues onward and upward with this uptrend despite those who continue to fight the trend.

    Earnings continue to be the focus and MCD delivered its results prior to the market open. Unfortunately, it missed its estimates and the market punished the stock throughout the day. Overall, those who eat less MCD tend to be a bit healthier people in general. MCD clearly weighed on the Dow Jones Industrial Average and the stock does appear to be entering into a downtrend. MCD is not a typical name we'd be involved with, but given its price action to date we'd avoid the long side.

    Housing stocks will begin to deliver its earning releases shortly. ITB and XHB continue to look very top h heavy. ITB looking the worse out of the two, but both clearly are struggling at the moment. Nothing in this QE/ZIRP driven market would surprise us, but it does appear the housing stocks are set to go lower. PHM reports before the bell on Thursday and it appears to be rolling over. So much of the economic recovery talk has been surrounded by the housing recovery will make this week interesting. SHW disappointed with its earnings, yet HD and LOW are near or at highs. LL reports on Wednesday too. HD and LOW do not report till the middle of next month. Keep an eye on housing stocks as well as to those who are tied into it.

    Gold and silver pushed off their lows nicely today. Certainly here in the short-term a bottom is in place. We have certainly seen a few cover here. Does it mean gold and silver are headed back to 2012 highs? It does not. We'll be patient and wait for proper entries and use proper risk management before entering into any trade.

    Nice way to kick off the week with gains. Stick with the process and have a great week!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 23 12:52 AM | Link | Comment!
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