After Wednesday's big selloff, the market bounced in the morning on a decrease in jobless claims. However, worries about the GDP and the political circus surrounding the debt ceiling debate prompted selling into the rally. The market ended mixed with techs slightly higher.
This morning, PCP reported a solid quarter and saw its shares trading above $164 intraday. However, PCP ended up just +3.08, or +1.97%. SKX was upgraded to "buy", as its shares popped +18.53%. CROX reported strong earnings that beat the estimates, sending its shares flying +15.5% higher. After the market, STEC got pummeled, down more than 35%. STEC missed its earning estimates and gave a very weak forecast. VPRT stumbled more than 28%, after giving a weak forecast for 2012.
The Dow was down 62.44 points; SPX slipped 4.22 points; Nasdaq added +1.46 points:
Most sectors were flat, changing by less than 1%. Mining and energy sectors were weak. Financials were flat. Techs eked out a small win.
SPX slipped 4.22 points to close at 1300.67. It closed below its daily MAs. Its MACD went down.
Nasdaq added +1.46 points to close at 2766.25. It closed right at its 30-day MA. Its MACD also turned lower.
VIX has popped above 23, almost hitting 24. Things are a lot more volatile right now. We are seeing mid-day swings. The best thing to do right now is to be patient and not to trade too much. Keep lots of cash. The market is range-bound and has the potential to break down. The market is waiting to see what comes out of the political circus in Washington. So, we should take things lightly as well. There's no need to be in a hurry to trade right now, as the market is still range-bound. SPX is testing 1300, below that 1280 has support.
Good night and HappyTrading! ™