Seeking Alpha

Joshua Hayes'  Instablog

Joshua Hayes
Send Message
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
My company:
Big Wave Trading
My blog:
Big Wave Trading
  • BAC And YHOO Soar As Stocks Get Back On The Winning Track 0 comments
    Jul 17, 2013 11:45 PM | about stocks: IBM, EBAY, INTC, YHOO, BAC, SCSS, QQQ, DIA, SPY, IWM

    Poor housing data kicked off the morning with Mortgage Applications falling along side Housing Starts and Building Permits. However, the data wouldn't keep stocks from ending positive as Bernanke's testimony and continued to press the Fed would remain accommodative as long as possible. Gold and silver didn't buy the Fed's Chairman Statement as both precious metals turned lower. YHOO shined after its earnings report Tuesday night. BAC jumped as well after reporting earnings earlier in the day. Volume was mixed, but NYSE volume can be attributed to the huge turnover in BAC. Tomorrow is a new day and the evidence we see continues to have us operate on the long side of the market and there is no sense in fighting it.

    EBAY and INTC reported earnings and the reaction is disappointing so far. EBAY is nearly down 5% after guiding EPS lower for the third quarter. INTC missed on revenues and while it is not trading down 5% it is in the red. On the upside IBM reported earnings and the stock's reaction is quite positive. The stock is hanging above 200 price level. It will be interesting to see if the stock can hang above this level at tomorrow's open. SCSS reaction after earnings was disappointing and the stock is down more than 8%. Quite the moves here in after-hours trading making tomorrow's open very interesting.

    A quick note on sentiment from the II survey as bulls jumped above 50% while bears went under 20%. Last week we saw a similar spread between AAII Bulls and bears. We'll post these numbers in tomorrow's commentary. Sentiment is a tough gauge for market tops as they often hit extremes as the market continues to hit new highs. It does appear we are nearing an extreme point.

    An area of cautionary tone is the amount of stocks above their respective moving averages. At today's close nearly 87% of stocks were above their 20 day moving average. 75% of stocks were above their 50 day while 79% of stocks were above their 200 day moving average. We are certainly at a point where a normal correction would occur. Will it occur tomorrow? It is anyone's guess, but it's a friendly reminder to make sure you stick to your game plan.

    Ben Bernanke is keen on keeping the market away from hearing taper talk. Will the Fed chairman simply just announce the taper out of the blue? Who knows, but at this point it seems likely as any mumbling of a taper sends traders scrambling.

    Cut those losses 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.

    Stocks: IBM, EBAY, INTC, YHOO, BAC, SCSS, QQQ, DIA, SPY, IWM
Back To Joshua Hayes' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.