The market had a pullback last week, but, bounced strongly this week. Today, SPX closed above 1460, right back to where the pullback happened. The story this week, however, has not all been positive; big movers were all over the place on both sides! Well, it is the earnings season! ISRG had a huge ($35) range today after reporting earnings last night; it finished flat, off just 72 cents! APOL tumbled more than 22% after reporting disappointing results; we picked up some puts yesterday and scored an overnight +195% gain! CHKP was down 13.22% after giving weaker-than-expected guidance. CREE rose more than +10% on strong results and outlook. CYMI popped a whopping +23% after ASML agreed to buy the company; ASML shares slipped 6.55%.
As the market climbed these past few days, we locked in some profits:
The Dow was up +5.22 points; SPX added +5.99 points; Nasdaq gained +2.95 points:
BTK (biotech) popped +2.13%, so did XME (metals and mining). XLE (energy) and OIH (oil services) both had a positive day, up +1.26% and +1.63%, respectively.
SPX added +5.99 points to close at 1460.91. Its daily MAs and MACD turned up.
Nasdaq climbed +2.95 points to close at 3104.12. It closed at its 20-day MA and its MACD went up.
Techs have actually been weaker than the broader market. AAPL and AMZN led the pullback last week. Yesterday, IBM reporting quarterly results that were softer than expected; its shares fell almost 5%. Cloud stocks were all weak today: FFIV -3.82%; CRM -2.46%; VMW -3.82%. However, in the face of tech leaders pulling back, the broader maker managed to closed in the green. Industrials were strong today and housing stocks also rocked higher. In Asia, Hong Kong has already broken higher. China and Japan are starting to turn bullish. As money rotates from techs to industrials, new money from the sideline should start to come in and pick up some tech stocks on their recent pullback. AAPL has pulled back from $700 to test $625, closing at $645 today. AAPL is widely expected to present iPad Mini next week. We could see some buying ahead of the event on Oct 23 (Tuesday). NFLX has been falling for the most of this year, and has finally turned higher. We could see NFLX test $80 soon.
Good night and HappyTrading! ™