Market Recap Feb 15, 2013
Here is what the market has been doing. Trucking higher without a break. It has frustrated bears and bulls are the same time. But the trend is still up and intact. Today was the day SPX dropped to its 10 moving average and than quickly reversed higher. This shows power in the move and when everyone is expecting a sell off, it does not happens.
So as long the trend is intact and we have not broken 10 moving average and or the 21 day moving average we should still be going higher. Though some amount of digestion would be very healthy here if we can go sideways.
The strongest stocks all have been going higher. LNKD, NFLX and GOOG which is about to basket the 800 mark for the first time. These stocks are being bought at every dip here and the action couldn’t be any stronger. NFLX is now filling a year and half old gap here which ends at 205.
AAPL on the other hand finished the week at 460 and in a miserable finish here. It needs to hold here at the 460-463 levels or it will drop again to the 443 area of the previous gap. David Eihorn’s lawsuit has a hearing next Tuesday in New York where it seems the stock holders activism is gaining mommentum and we just have to see what the AAPL’s stock holders meeting would bring on February 27, 2013.
Staying with the trend has paid us well and unless broken we continue to trade in that direction.
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