The market was very volatile today. Financials started lower on worse-than-expected earnings from MS. But, soon climbed into the green and sparked a market rally. WFC delivered record earnings as the company had forecasted. Solar stocks added further fuel: SPWRA +7.91%, FSLR +4.09%, ENER +11.88%. VIX was down most of the day, but, jumped higher in the last hour and closed above 38. The financials turned 180 degrees in the last hour and dove downward, bringing most of the market into the red.
Techs held up today, perhaps anticipating good quarterly results from AAPL and EBAY. After the market, both AAPL and EBAY delivered good earnings. AAPL saw strong sale on iPhone and its net profit rose to $1.21 billion. AAPL shares were up nearly +3% in AH trading. EBAY earned 39 cents per share, beating the 33 cents per share estimated by the analysts. EBAY traded +5.41% higher in the evening.
The Dow ended down 82.99 points; SPX slipped 6.53 points; Nasdaq eked out a +2.27-point gain:
XLF (financials) lost 3.58%, but, HGX (housing) rose +2.25%. SOXX (semiconductors) led the techs with a +4.33 gain. GLD (gold) and SLV (silver) both went higher. USO (oil) and UNG (natural gas) were flat. XME (metals and mining) added +2.31%. PBW (clean energy) was up _2.41%. FXI (Chinese ADRs) sank 3.38%.
SPX slipped 6.53 points to close at 843.55. It closed just below its 10-day MA. The MACD was flat.
Nasdaq added +2.27 points to close at 1646.12. It closed just above its 100day MA. The MACD was also flat.
The market is struggling to push higher and fighting the 10-day MA to keep support. The financials are very volatile and are dragging the market all over the place. Energy stocks are still weak and oil seems to be on the verge of breaking down. Techs are really holding the market up. Solars may finally be breaking away from the energy sectors and trade more with the techs. It is a very volatile environment right now as the market consolidates after 6 weeks of run-up. We took some quick winnders on FSLR and BIDU today. But, since the market fluctuated so fast, we opted to cash these out and stay mostly in cash. Techs should get a morning jump on AAPL and EBAY earnings. We'll have to see if the financials join in to secure the market's momentum.
Good night and HappyTrading! ™
Disclosure: MS none, WFC long, SPWRA none, FSLR none, ENER none, AAPL none, EBAY none