Stocks gain little traction on the day despite AAPL moving more than 4% on the day. BA weighed on the Dow Jones Industrial average as more problems with its 787 plague the company. Volume was lower across the board, but nearly 10% lower on the NASDAQ. Volume continues to be non-existent as the market consolidates. We believe it to be a good thing at this point in time. The last hour of trading saw the major averages pull back from the highs of the session despite GS move after reporting earnings in the morning. Even with BAC moving higher by 2% the XLF could only close with a gain worth a penny. This market continues to work off the overbought conditions keeping our uptrend in place. However, we do need to see this market push into higher territory soon.
GS blew the doors off its earnings this morning. JPM missed their revenue mark, but was still able to close one penny off its 52 week highs. Given the action from GS, JPM, and BAC the XLF could only eek out a one penny gain. The ETF still appears to be moving higher and we would expect it to do so if we continue to see new highs from financials. BAC, PNC, and C are set to report earnings Thursday morning and will be the talk of CNBC.
The slew of economic data this morning did very little to move the markets very much. Even with the NAHB survey didn't derail the markets. For the first time in 8 months homebuilder sentiment did not see gains. After 8 months you would think sentiment would calm down and it did. Homebuilding stocks appear to be holding up well despite the lack of good news from sentiment. Do not forget the incredible run these stocks have been on and know your proper exit points.
The market still appears to be moving higher with all the moves we are seeing from individual stock names. To protect ourselves from being wrong we have a proper exit strategy and so should you.
Disclosure: I am long JPM.