Some Charts February 1, 2013
Today’s non -horrible jobs report put the indexes back on the roll again. The non farm payrolls data was in line of expectations of 157,000 jobs which is what the market has been getting for the last three months. The last two months payroll numbers were also revised upwards. But the unemployment rate notched up to 7.9 percent which is going to be there, unless there is a significant push into creating higher number of jobs. Most economists agree it would take 250,000 and upward job numbers for a sustained period of time to bring this rate down. It takes about 125,000 jobs a month to keep up with the labor force.
SPX was technically down for the last three session and today it put in a bullish engulfing candle which covers last three sessions. Most leaders were up at the same time and it was a broad market rally after a strong January showing. Remember February is usually a bearish month historically, but we cannot trade based on precedents or hearsay. Please click on charts to enlarge and view full screen.
RUT has been the lead index this year and as usual it put in an impressive new high at 912 which has not been seen in a decade. The broad market nature of the rally indicates a wide variety of stocks participating here. RUT did turned down and came to rest on its 10 moving average last few days but this was hardly any pullback. The indicator is overbought and may remain overbought for some extended periods.
IYT Lets not forget the DOW theorist and fans. It did move down to its 10 day line yet it set new highs, but ended the day lower at 103. This does have some divergences from the SPX and RUT which were very bullish during the day
GOOG broke out from a week long consolidation pattern here to set all time new highs at 775. This the highest GOOG has been since its IPO back in 2004 and the strong earnings and fundamentals and hoard of cash on the balance sheet, has been propelling the stock as the new market leader since the down fall of AAPL
AAPL The fallen star had nothing new to write home about as it consolidates here at the 450-460 range. This is the small range one can day trade up and down. AAPL should be treated just as cash flow vehicle for short term trading. Carrying overnight has the gap risk next morning, and most of these gaps are 5-7 points in this stock as lots of activity results in pre-market trading. For now its an avoid at best.
AMZN This stock has bad earnings and fitfully is sliding down towards the 50 day line. The next buy area would be a bounce from the 50 day with confirmation. The stock can slice through the 50 day moving average so caution is needed.
SSYS This stock was sold off hard last few days and has recovered above its 50 day line. The stochastics indicate oversold levels and hence make a nice entry for longs. The buy area is 78.5 for basic level entry on stochastic trading.