After a whole month of rally, stocks finally showed some minor signs of fatigue. GDP came in a bit lower than expected today, but, was quickly brushed aside by the market. The Fed really didn't say anything new today, either. So, the market proceeded to consolidate a bit here at SPX 1500. Industrials were weak again. AMZN traded as high as $284.2 and closed at $272.76, up +4.77%. AMZN's earnings report last night was really not all that impressive, but, sales were strong. CVLT popped more than +9% after reporting a strong quarter.
After the market, QCOM reported strong sales from smartphones and raised its guidance; its shares jumped +6.23%. We may see QCOM test $70 soon. FB fell more than 3% although it delivered a solid quarter, beating its earnings estimates. TSCO jumped more than +6% after reporting strong sales in its animal products. TSCO jumped above $100 this evening and could trade even higher tomorrow. FIO fell a whopping 18% after giving a disappointing forecast. JDSU vaulted almost +15% after beating its earnings estimates, erasing the 5% drop during the day. CTXS gave strong forecast and sent its shares flying +11% higher.
We continued to lock in profits and have started picking stocks and trading on both sides. Here are the closed trades so far this week, including an overnight +80% gain on HLF puts and a +100% profit on GLD puts on Monday:
- 07:57 | Bagger Vance AMZN ($273.00) Sold to Close 0201P270 Feb 270 calls, at $2.56 -36%
- 07:53 | HappyTrading HLF ($35.40) Sold to Close 02 Feb 40 put, at $5.60 +81%
- 07:07 | HappyTrading HLF ($36.10) Sold to Close 02P40 Feb 40 put, at $5.10 +65%
- 12:09 | HappyTrading GS ($147.00) Sold to Close 02C145 Feb 145 calls, at $3.75 +12%
- 11:15 | HappyTrading LLY ($54.60) Sold to Close 02C52.5 Feb 53 calls, at $2.30 +28%
- 08:51 | HappyTrading SHLD ($48.20) Sold to Close 02C45 Feb 45 calls, at $4.10 +55%
- 07:28 | HappyTrading GLD ($160.70) Sold to Close 0201P161 Feb 161 put, at $1.08 +44%
- 06:57 | HappyTrading GS ($145.70) Sold to Close 0201P145 Feb 145 put, at $1.00 -44%
- 10:27 | Ecstatic Plays NFLX ($160.80) Sold to Close 0201P165 Feb 165 put, at $8.90 +19%
- 09:02 | HappyTrading FB ($32.50) Sold to Close 02C30 Feb 30 calls, at $3.30 +46%
- 09:00 | HappyTrading GLD ($160.25) Sold to Close 0201P161 Feb 161 put, at $1.50 +100%
It has been a nice month to start the year. Market conditions have much improved. I'm bringing back the "Second Month FREE" deal for any new monthly subscription to any service. This offer will be valid until Feb 28, 2013.
The Dow was down 44 points; SPX slid 5.88 points; Nasdaq lost 11.35 points:
BTK (biotechs) was down 1.27%. XME (metals and mining) dropped 1.8%. OIH (oil services) shed 1.03%. GLD (gold) and SLV (silver) were up.
SPX slipped 5.88 points to clsoe at 1501.96. It closed just above 1500. The daily MAs and the MACD were little changed.
Nasdaq slipped 11.35 points to close at 3142.31. It closed at its 10-day MA. The MACD slipped.
Although the markets took a pause today, things still held up pretty well. We might see some profit-taking tomorrow, and more consolidation for the rest of the week. Many stocks are looking quite toppy and are beginning to roll over. While I don't expect the pullback to be sharp, this market may need to see a pullback before going higher. Things are pretty much progressing along my forecast this weekend, and we've already discussed some support levels. We could see a stock-picking environment while the consolidation goes on, where good trades can be found on both sides!
Good night and HappyTrading! ™