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Market Consolidates After Solid Gains Last Week: SPX, Nasdaq, PCLN, MA, V, VECO, CREE, VMW, CRM, CMG

|Includes: Booking Holdings Inc. (BKNG), CMG, CREE, CRM, MA, V, VECO, VMW

After making solid gains last week, the market has been consolidating after the long Labor Day weekend.  Lacking economic news in the US, the market seemed to focus on the European financial system.  Yesterday, the market slumped on worries of European banks.  Today, the market rallied after a successful auction of Portuguese government debt.  Are they really the reasons that drove the market these past 2 days?  Or, are they just "smokescreens" designed to mask the fact that the market needed to let off some steam?  Whatever the truth is, as discussed in my Market Forecast this weekend, "the market [needed] a bit of consolidation".

PCLN jumped out of the gate this morning on analyst upgrades, with Deutsche Bank giving a $350 target.  PCLN ended up $17.22, or +5.53%.  In the Sector Watch this weekend, we specifically pointed out that "PCLN closed near $314, and, as mentioned in the Trading Room, should go higher in a bullish market environment."  PCLN's Sept 320 calls went up +200% today!  V and MA both sank today on concerns of new rules for debit cards.  V was down 4.13% and MA lost 3.05%.  LED stocks suffered another leg down today as more data showed inventory build-up in the LCD flat-panel television sector.  CREE slumped 8.1% and VECO dropped 8.31%.  GMCR vaulted +7.59% as coffee price hits 13-year high!

The Dow was up +46.32 points; SPX added +7.03 points; Nasdaq gained +19.98 points:

BTK (biotechs) added +1.71%.  OIH (oil services) bounced +1.5% as USO (oil) added +1.13%.  XLF (financials) rose +1.02%.  UNG (natural gas) slipped another 1.24%.  MOO (agriculture) continued to rise, up +1.4%.  FXI (Chinese ADRs) advanced +0.44%.

SPX

SPX added +7.03 points to close at 1098.87, just below the 1100 level.

Nasdaq

Nasdaq gained +19.98 points to close at 2228.87.  The 10-day MA has turned up and the MACD continued higher.

After Monday's quick pullback, the market tried to resume the rally today, although the market is slightly down from last Friday's close.  SPX was not able to close above the 1100 level.  Restaurant stocks are still holding strongly, as CMG sets a new 52-week high.  Energy stocks are still relatively weak.  In the tech stocks, AAPL closed at nearly $263 today, and looks ready to challenge $270 soon.  CRM continues to hold near $120.  VMW reported strong earnings, but, investors' attention shifted over to CRM recently.  VMW could be setting up for a move higher as it finally cleared above the resistance at $82.5 last week.

Good night and HappyTrading! ™



Disclosure: no positions