Stocks end winning streak
SPX showed up with a distribution day for the first time in this long winning streak. This was the first distribution day and the Technical damages was just barely noticeable. It was like a minor dent on the surface. We just have to see how this overbought market handles Ben Bernankes testimony before Congress on Wednesday. The market will be all ears into every word he will say or not say.
Running up higher every day, on Uncle Ben’s drug, we have come a long way from the lows set just last month. The winning streak in many stocks may be just ending or new set ups will form in next few days. The action in stocks was still very bullish by all standards. However today we saw some selling in high profile names like TSLA. The stock has run up 250% in 60 days and gave up 13% of its gain in a single day. The next stop for TSLA is perhaps its 50 day line. We just have to see how this parabolic move ends after the downgrade from Goldman Sachs.
LNKD and NFLX had two different set ups today. While LNKD went down right from the start NFLX showed up a real strength early on but collapsed by mid morning. Interesting to see it hit all time highs at 266 and than finished in the red with big topping tail on the charts.
YHOO and URI United rentals both had earning after the market close. YHOO beat ESPS but sales lagged, see how these stocks open tomorrow.
Expect some market movement if Ben Bernanke starts saying the right things to re-assure both lawmakers and the Wall Street.