The market started out on a positive note, with JPM delivering strong earnings. However, the buying quickly faded as Bernanke testified in front of the Congress. Energy and mining stocks led the pullback. Financials also turned weak, with GS, MA, V, and BLK all finished in the red, after a strong open. JPM managed managed to hang on to some gains.
After the market, GOOG reported a blowout quarter, easily beating all estimates. Yesterday, in our Trading Room, I commented:
July 13, 2011 10:59 AM
could see $600+ on positive earnings reaction
At the time of this writing, GOOG was trading at around $595, up +13% after market! BIDU, SINA, SOHU were all higher this evening.
The Dow was down 54.49 points; SPX fell 8.85 points; Nasdaq dropped 34.25 points:
XME (metals and mining) fell 2.45%. XLE (energy) was off 0.66%. XLF (financials) finished down 0.73%. SLV (silver) and GLD (gold) went higher. USO (oil) was down 2.09% and OIH (oil services) lost 1.29%.
SPX slid 8.85 points to close at 1308.87. It closed above the 20-day MA. The MACD went lower.
Nasdaq dropped 34.25 points to close at 2762.67. Its daily MAs were little changed, but, the MACD slid.
The market has been very volatile due to talks of debt problems in Europe, and the debt ceiling debate in the US. The market has been pulling back and consolidating after 2 weeks of very strong rally at the end of June. With GOOG and JPM delivering strong earnings, we may start to see some buyers coming back in, especially if our Congressmen can come to their senses and stop prolonging what they know they need to do. With GOOG's blowout quarter, we should see GOOG above $600+ tomorrow. But, it may not be done there, as January high was $640. I think we're heading north of that level! Also, watch the Chinese internet stocks, especially SINA, as it can pop fast, faster than BIDU!
Good night and HappyTrading! ™