GOOG and AMZN lead the Market higher Despite Light Volume

Stocks moved higher despite the Shanghai dropping 3.65% as the country tries to solve its real estate issues. Intraday volatility continued, but stocks were able to find their footing after the lunch hour. Lows were set just after noon time and did not look back. Volume throughout the day ran well under Friday’s levels. We aren’t surprised volume was running lower as we have seen Mondays have been low volume days. GOOG and AMZN lead the NASDAQ along with YHOO while AAPL continued to lag. Today’s price action is bullish, but we still remain in Neutral mode and looking for a follow-through day. AAPL continues to remain weak and we are not surprised one bit as the stock has been in a downtrend for quite some time. We can point to many different reasons for the stock’s decline. Does it matter what reason we pick? Not one bit. At this point you will have many trying to pick a bottom in the stock and will fail miserably. The stock does have a pivotal point of 435 and a move above that would be a buy signal. We can’t predict moves and can only react to how the stock moves. GOOG broke out to new highs on big volume today showing the big cap technology stock continues to see accumulation. Perhaps GOOG Glass will be a big product break through adding to GOOG’s bottom line or not. The action in this stock while not ideal is quite bullish. At this point, you are chasing the stock if you are thinking of buying it here. If we get more stocks acting like this we’ll see this market push to new highs. Tomorrow’s economic release will be from the ISM Non-Manufacturing. Later in the week we’ll get the Fed’s beige book. While these will provide an excuse for the market to move and we’ll be ready to react. Short-term Trends TICKER ST TREND TREND CHANGE DATE CLOSE % SPY DOWNTREND NO CHANGE 3/4/2013 152.92 0.53% IWM DOWNTREND NO CHANGE 3/4/2013 91.13 0.26% QQQ DOWNTREND NO CHANGE 3/4/2013 67.68 0.45% USO DOWNTREND NO CHANGE 3/4/2013 32.40 -1.04% UNG UPTREND NO CHANGE 3/4/2013 19.45 1.99% GLD DOWNTREND NO CHANGE 3/4/2013 152.30 -0.09% SLV DOWNTREND NO CHANGE 3/4/2013 27.60 -0.07% DBC DOWNTREND NO CHANGE 3/4/2013 26.84 -0.37% FXY UPTREND NO CHANGE 3/4/2013 104.86 0.10% FXE DOWNTREND NO CHANGE 3/4/2013 129.13 -0.03% TLT UPTREND NO CHANGE 3/4/2013 118.9 -0.53%

Stocks Rebound from Monday’s Losses on Higher Volume

The market quickly erased majority of Monday’s losses in one session. Volume rose across the board from Monday’s level. Monday’s have been for quite some time light volume days and higher volume kicking in today was not a surprise. Banks led the way while Small caps lagged along with the Dow. One day does not make a new trend and why we weren’t quick to jump off the bandwagon yesterday. Volume on the NASDAQ has been above average both days this week and we’ll need to see some price movement with this volume. We remain in an uptrend and will continue to act accordingly. Interestingly enough the QQQs have flashed a new Downtrend in our short-term trend following signal. It could very well be false, but a signal is a signal. IWM and SPY still remain in their uptrends for now. However, the FXY continues to fall as the Yen weakens considerably. It has been quite some time since we have been witness to this type of a collapse of a currency’s value in quite some time. If you have a process born from rigorous testing you follow it religiously. Stick to the plan and execute! Tomorrow we will not have any major economic releases. Today we did get January’s ISM non-manufacturing reading. Expectations were for a reading of 55 and the print was 55.2. The market rallied on the news of beating expectations by .2! December’s reading was revised lower to 55.7. New Orders declined from last month’s pace leading a few to believe the index will be heading lower this month. Bottom line the market liked the number and pushed higher. This week we’ll certainly need to see last week’s high taken out if volume continues to remain above average. Remember, to cut your losses! Short-term Trends: TICKER ST TREND TREND CHANGE DATE CLOSE % SPY UPTREND NO CHANGE 2/5/2013 151.05 1.01% IWM UPTREND NO CHANGE 2/5/2013 90.08 0.90% QQQ DOWNTREND CHANGE 2/5/2013 67.46 1.47% USO UPTREND NO CHANGE 2/5/2013 35.03 0.72% UNG DOWNTREND NO CHANGE 2/5/2013 19.18 2.73% GLD DOWNTREND NO CHANGE 2/5/2013 161.96 -0.02% SLV UPTREND NO CHANGE 2/5/2013 30.76 0.23% DBC UPTREND NO CHANGE 2/5/2013 28.59 0.39% FXY DOWNTREND NO CHANGE 2/5/2013 104.78 -1.37% FXE UPTREND NO CHANGE 2/5/2013 134.68 0.46% TLT DOWNTREND NO CHANGE 2/5/2013 117.02 -0.89%

NASDAQ Leads Market higher in Light Trade Ahead of Elections

Tomorrow’s Presidential and Local elections have been the dominating headline for much of the day as US Voters are set to usher in new and old leaders. The market on Friday sold the jobs report as the majority of the market closed just off the worse levels of the session. Friday’s session was quite bearish given what was to be perceived as a positive jobs report. At Friday’s close the market was in borderline oversold territory and today’s bounce appears to be a reaction to the heavy selling on Friday. Light volume ahead of tomorrow’s election is to be expected with bets not willing to be made prior to exit polling. We remain in sell mode and will continue to remain in sell mode until this market can find stable ground. Economic data was on the light side today with the ISM Non-manufacturing index was released. The service sector did expand, but at a slower pace than expected. Logically thinking would have had the market move lower, but we rallied on the news. It wasn’t until the end of the day where buyers showed up. It was on the light side as volume was well below Friday’s levels. Today’s action while in the green was not very bullish considering volume was so light. Tomorrow’s session will prove to be volatile if we begin to see exit polling contradicting the polls we have been seeing up until this point. In the end it will depend on who will come out and vote. Will it be the Democrats who outnumbered Republicans last election? Or will we see Republicans dominate the turnout? The question is why are we only stuck on a two party system? Cut your losses! Ride the trend.