US going Cliff Diving Unless Congress can Pass a bill prior to Mid-Night
Led by AAPL and the NASDAQ stocks were able to shake off opening lower closing above Friday’s high. Ending the year the S&P 500 ended with gains of 13.4%. Last year at this time AAPL was just beginning its 50% and with 2013 around the corner we’ll see where this market heads. The VIX was crushed as traders were busy selling volatility ahead of a fiscal cliff deal. Volume was higher on the day, but overall volume was very light. It appears the market is poised to continue to push higher until we get a deal. Price action today flipped to bullish for now.
AAPL jumped more than 4% on the day as Barron’s called the stock cheap. Barron’s loves “cheap” stocks, but we like stocks that move regardless if they are cheap or not. Today’s move does appear to be quite bullish with volume above average and support at $500. The most recent action while it appears to be a cup base with a few issues mainly with volume being heavy on the left side. All things being said we have seen plenty of these types of bases over the past few years. For this base to work (cup with handle) we’ll need to see the handle form above $600 (mid-point of the top to bottom of the base). Keep an eye on the stock as we push forward into 2013.
Growth does appear to be coming from overseas with EDC and EEM leading the way. EWX, EWS, EWH, EWA and the list goes on. Many of these ETFs are looking solid and for more gains. EWX and INDY look bullish (INDL using 3x). Tread carefully with a few of these ETFs trade very thinly. We do think it is clear outside of the US is ready to grow and it will remain to be seen whether or not the US can keep pace.
Be safe tonight and have a great 2013.
