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Market Stalls After Monday Rally: SPX, Nasdaq, GLD, SLV, ATHR, ARUN, CIEN, MOS, POT, CF, AGU, YOKU, SINA, SOHU, CTRP

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The market saw a slight weakness today after Monday's big gains.  Metals and energy stocks pulled back.  Gold, silver, and oil were all down.  GLD (gold) fell 2.36%; SLV (silver) dropped 3%; USO (oil) slipped 2.48%.  Talks and speculations about mergers in the tech stocks were buzzing today, as New York Times reported QCOM being close to making a deal to acquire ATHR at a value of $45/share.  ATHR jumped +18.85% to close at $44.  Semiconductor sector received a boost.  Other mid-sized tech companies were being targeted as potential M&A plays:  CIEN rose +3.55%.  ARUN added +1.65% and pushed up another +1.34% in after-hours trading.

After the market, MOS reported very strong earnings, adding to the recent bullish sentiment in the agriculture sector.  MOS shares jumped +3.21% this evening.  Other fertilizer stocks moved up as well:  POT +2.14%, AGU +1%, CF +1.13%.  YOKU shares surged more than +8% after it announced a partnership with Hollywood to deliver the hottest films in online streaming videos.  Other Chinese internet stocks also did well today.  CTRP popped +6.85%; SINA gained +5.75%; SOHU added +1.08%.

The Dow finished up +20.43 points; SPX slid 1.67 points; Nasdaq fell 10.27 points:

GDX (gold miners) fell 2.88%, while XME (metals and mining) lost 0.74%.  OIH (oil services) was down 1.79% and XLE (energy) dropped 0.86%.  XLF (financials) was off slightly.  FXI (Chinese ADRs) added +1.26%.


SPX slid +1.67 points to close at 1270.2.  Its daily MAs glided up and the MACD was flat.


Nasdaq lost 10.27 points to close at 2681.25.  It tested its 10-day MA, but, managed to close above.  The MACD flattened.

This market has been running higher for 3 months now.  On Monday, it looked like the market was ready for a new leg up.  But, it didn't get a follow-through today.  Gold and silver pulled back today, as investors cash out profits from select "safe havens" to perhaps get back into equities.  However, rotations don't always happen immediately, meaning money doesn't come out of one sector and into another right away.  Especially with the stock market already soaring high.  The market has been stubbornly "melting" higher and could really use a quick pullback.  While I don't think the pullback should be steep, I wouldn't mind to see a quick one for the continuing health of this bull run.

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

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