January 26, 2012 at 20:51 PM EST
Some Profit-Taking, Finally… SPX, Nasdaq, NFLX, SNDK, CTXS, OXY, APA, IOC, EOG, RVBD, JNPR
The market charged higher at open today, with SPX going above 1333.  But, the rally didn’t hold, and some profit-taking finally kicked in.  The market was already looking to slip yesterday.  However, after Fed’s announcement to keep interest rates low until 2014, stocks pushed higher again.  Gold jumped back above $1710/ounce, and further extended gains [...]

The market charged higher at open today, with SPX going above 1333.  But, the rally didn’t hold, and some profit-taking finally kicked in.  The market was already looking to slip yesterday.  However, after Fed’s announcement to keep interest rates low until 2014, stocks pushed higher again.  Gold jumped back above $1710/ounce, and further extended gains today.  We have been very careful this week, not chasing trades.  We took some decent profits this morning:

  • January 26, 2012
  • 10:35 | Ecstatic Plays NFLX ($117.30) Sold to Close 0127C115 Jan 115 calls, at $3.40 +39%
  • 06:53 | Ecstatic Plays MOS ($56.50) Sold to Close 0127C55 Jan 55 calls, at $1.59 +49%
  • 06:50 | Ecstatic Plays BIDU ($126.20) Sold to Close 0127C125 Jan 125 calls, at $1.80 +43%

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This morning, NFLX popped higher at open after delivering a strong quarter last night.  NFLX shares climbed to nearly $120/share before settling back down to close at $116.01, up +22.06% for the day.  SNDK sank 11.37% on softer forecast.  CTXS’s guidance was also light and its share shed 3.86%.  OXY reported a strong quarter, but its shares fell more than 3%.  Energy shares were mostly weak:  HES tumbled again, down 4.05%; APA lost 1.92%; IOC was down 3.41%; EOG dropped 1.93%.

After the market, RVBD tumbled 13.77% on weak outlook.  JNPR provided a similar story with a soft forecast for 1Q; its shares shed 8%.

The Dow was down 22.33 points; SPX slid 7.62 points; Nasdaq fell 13.03 points:

SOXX (semiconductors) dropped 1.08%.  OIH (oil services) fell 1.28%.  XME (metals and mining) slid 0.92%.  GLD (gold) and SLV (silver) were up.  UNG (natural gas) spiraled lowered by more than 5%.  XLF (financials) was in the red as well.

SPX

SPX fell 7.62 points to close at 1318.43.  Its daily MAs glided up, but, MACD was slightly down.

Nasdaq

Nasdaq dropped 13.03 points to close at 2805.28, still above 2800.  Its MACD was flat.

The market has climbed higher and higher since the beginning of the year.  Now, we are going into the last week of January.  Profit-taking seems to be finally kicking in.  Good earnings were not good enough for today; forecasts had to also be strong.  Further, the "punishment" for light forecasts were particularly strong.  It is perhaps suggesting that this market is overbought for the near-term.  Still, this market is deep into its new bullish phase.  We’ll get the latest GDP report tomorrow.  Let’s see how the market reacts to the numbers.  We are back into holding mostly cash.

Good night and HappyTrading! ™

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