Some Charts 1-28-2013
SPX has been grinding higher every day for the past 8 sessions and today the rally took a breather. All the moving averages are rising. The market is overbought and the flat sideways motion may be coming. Until we pullback to 10 day or 21 day moving averages the rally is still intact. Good earnings have been propelling the market higher each day. Caution is needed when initiating longs here.
The broad market is also leading the charge to higher ground and RUT has made multi year highs today at 907 not seen since 2003. This is the leading index in all of the others.
With that said let take on some of the stocks how they have been holding up here. The first one comes to mind is mighty GOOG which had stellar earnings last week and gap opened 35 points and holding here at 750. Few days rest and sideways action would be good.
FB has earnings on January 29, 2013 and the stock has been very bullish making new highs today above the recent highs of 32.20. The stock has resistant at 34 and we just have to see what the earnings will bring here.
LNKD has a cup shaped pattern and it broke out today ahead of its earnings next week on Feb 7 after the market close. The stock had prior buypoints at 115.8 and cleared today s buypoint here at 125.83 and still within the range.
The Home builders were off a bit today on disappointing pending home sales. The leading stocks were down and after a nice run here. Here is a chart of LEN which has been moving higher and may be due for a rest. The dip could become another entry set up here.
Lasty we pick up the broken stock of all times AAPL. It had a nice run today and dipped into the gap between 443-425 but retraced higher. AAPL at this time has a lot to prove to its investors. The stock is completely broken, forming a declining wedge pattern and governed by a down trend line. It is way below all its moving averages which have not caught up with it because of the earnings huge gap last weak. Trading AAPL is a day trading enterprise and for bits and pieces here and there and for scalpers to create some cash flows. Use 435 as new lows for trading longs when needed.