On Monday, the market slid a little, but found some support at SPX 1370. Today, all major sectors rallied. Techs led the charge. AAPL took a nose dive yesterday down to $580. Today, AAPL rallied right back up to close at almost $610! Both IBM and INTC were strong during the regular session. But, after the market both stocks were down after the earnings were out. We sold our IBM calls before the close:
- April 17, 2012
- 12:49 | HappyTrading IBM ($207.10) Sold to Close 04C205 Apr 205 calls, at $4.10 +30%
I thought IBM was rallying too hard just before the earnings, so it was safer to just take the profit and run. It turned out to be a smart call.
URI delivered a huge quarter and its shares shot up +8%. I think this stock will continue to go higher tomorrow. ISRG reported another strong quarter; its shares were up more than $30 in after-hours, a new all-time high!
The Dow was up +194.13 points; SPX added +21.21 points; Nasdaq gained +54.42 points:
OIH (oil services) popped +2.07%. XLF (financials) added +1.31%. FDN (internet) gained +1.82%. SOXX (semiconductors) was up +1.56%. XME (metals and mining) bounced +1.79%.
SPX added +21.21 points to close at 1390.78. Its daily MAs were little changed, but, the MACD turned up.
Nasdaq gained +54.42 points to close at 3042.82, above 3000. Its daily MAs and MACD were flat.
The market appears to be much stronger than I thought. Today’s big rally was a surprise to me. In the past week, the market has been very volatile, threatening to breakdown. But, we kept on getting these sharp bounces that keep the market above the support levels. Was the recent test to SPX 1360 enough? It is still hard to say, for me at least. Both IBM and INTC sold off in after-hours. We’ll have to see how the market reacts to tomorrow morning’s fresh round of earnings. The strength in the financials seems to be helping, although GS was in the red even after beating its earnings estimates. C is getting a late reaction to its quarterly report from yesterday. Above $36, C could get a breakout. JPM and WFC recovered a bit from the slips after their respective earnings. BLK and PNC are reporting tomorrow morning. If the financials strengthens from here, we could see SPX 1400 tested soon.
Good night and HappyTrading! ™