NASDAQ Lags as S&P 500 Ends Flat as Volume Slides; European Woes continue

Joshua is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Overnight the Nikkei jumped 3.8% as the country remains hell bent on trashing their currency. Europe resumed moving lower as the DAX fell more than 80 points. On this side of the pond futures were lower on the moves in Europe. Just before lunch time rumors of a special dividend helped send the stock higher dragging the NASDAQ along with it. Just after noon time fortunes for the market reversed and the market headed back to the lows of the session. It appeared as if sellers were going to rule the day. At the close, buyers were able to get the market back to breakeven. Our uptrend remains.

Tomorrow we’ll get a rate announcement from the ECB followed by Draghi’s press conference. The EURUSD has been on a tear as of late as the US and Japan intend to print their respective currencies to oblivion. At this point the ECB can only cut rates as it cannot monetize debt. Draghi’s comments has moved the markets before and tomorrow shouldn’t be any different from the past. Which direction shall the market respond is anyone’s guess, but given our current uptrend we are going in long.

There is some bright spots out there including 3D Systems (NYSE: DDD) and Stratasys (NASDAQ: SSYS). Banks continue to act well lead by Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), and one of our new longs for tonight. The action in Expedia (NASDAQ: EXPE) left a bit to be desired and it appears more and more stocks reacting to earnings aren’t able to hold their breakouts. Amazon (NASDAQ: AMZN) is one while having a rich PE has been performing well until the most recent earnings report. Another blemish is the two leading stock indexes we follow remain underperforming the overall market. This can change in a hurry, but we are keeping an eye on our leaders.

Tomorrow morning will hold some fireworks and we are looking forward to seeing how our stocks react. Cut those losses short.

Short-term trends:

TICKER ST TREND CHANGE DATE CLOSE %
SPY UPTREND NO CHANGE 2/6/2013 151.16 0.07%
IWM UPTREND NO CHANGE 2/6/2013 90.46 0.42%
QQQ UPTREND CHANGE 2/6/2013 67.24 -0.33%
USO UPTREND NO CHANGE 2/6/2013 35.04 0.03%
UNG DOWNTREND NO CHANGE 2/6/2013 19.36 0.94%
GLD DOWNTREND NO CHANGE 2/6/2013 162.39 0.27%
SLV UPTREND NO CHANGE 2/6/2013 30.81 0.16%
DBC UPTREND NO CHANGE 2/6/2013 28.55 -0.14%
FXY DOWNTREND NO CHANGE 2/6/2013 104.85 0.07%
FXE UPTREND NO CHANGE 2/6/2013 134.13 -0.41%
TLT DOWNTREND NO CHANGE 2/6/2013 115.98 0.82%

QQQ changed back to an uptrend. This is due to the short-term nature of signals generating more signals.


BigWaveTrading has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Amazon.com, Goldman Sachs, and Stratasys. The Motley Fool owns shares of 3D Systems, Amazon.com, Bank of America, JPMorgan Chase & Co., and Stratasys and has the following options: Short Jan 2014 $55 Calls on 3D Systems and Short Jan 2014 $30 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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