Volume jumped on the day, but price gains weren’t hefty. Financial stocks continued to play nice in the sand box with BAC helping out the Dow Jones Industrial average. Semi-Conductor stocks got a boost from an upgrade as INTC lead the way. On the flip side, GOOG and AMZN were hit pretty hard with heavy selling in GOOG hard after a solid run up. Despite these two large cap technology stocks underneath the market appears to have what it takes to push higher, but as a whole with volume and little price movement does put up a caution flag. While there may be caution in the wind it does appear there is enough leadership to push this market higher.
We certainly want to see better price gains when we have the volume above average. The NASDAQ got support at the two hundred day moving average today a positive sign. Just after 11 o’clock things weren’t looking too good for the NASDAQ and the market as a whole. Support did show up, but the market was unable to stack on the gains. The late day sell off wasn’t severe, but it was telling the market may be in for a pull back to consolidate the recent gains. We’ll watch for major distribution and if the market can consolidate over the 200 day moving average.
Alcoa posted earnings after the bell today kicking off earnings season. It will be interesting to see how this earnings season unfolds as we will see if the 4th quarter produced gains. Reactions will be fun to watch as well, the best course of action is having a plan heading into the earning season.
The trend remains up and until that breaks look for this market to continue its way higher. Always have a game plan! Of course, it goes without saying: CUT YOUR LOSSES.
