The S&P and Nasdaq finished with modest gains in today's session, finishing up 0.20% and 0.36% higher respectively, but the Dow lagged near the flat line as the McDonald's (MCD) earnings miss weighed on the index. Although it is earnings season, it is still the middle of summer and the recent action has been a little more lethargic.
Precious metals showed relative strength in today's session, gapping up and continuing higher during the session. Gold finished the day up 3.26% and silver finished up 5.45%.
The S&P continues to inch higher since breaking out to new all-time highs above 1687. At this stage it would be constructive to see the S&P hold above 1687 for a few more sessions before making another move higher. Current leadership is coming from the Financials ETF (XLF), the Health Care ETF (XLV) and the Industrials ETF (XLI), which are all trading at new 52-week highs. The Oil Services ETF (OIH) has also seen a spirited move higher recently, although the macro picture for this group has been a bit weaker. As we, and many others, have stated many times before, the trend is your friend. Continue to maintain a long-side bias until composure changes.
It's another busy week for earnings. Tonight Netflix (NFLX) is currently trading about 6% lower after its earnings report. Apple (AAPL) reports tomorrow after-hours. So far earnings season has been a mixed bag. There have been largely positive results from the financials and the oil stocks that have reported so far. Schlumberger (SLB) has been a standout in the oil stocks. Tech stocks have failed to impress, however. Microsoft (MSFT), Intel (INTC) and eBay (EBAY) are all experiencing technical damage after their weak reports. Google (GOOG) saw a large gap down after a miss on earnings but has regained composure after rallying 35 points from the earnings low.
S&P
Source: eSignal
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The Financials Are Staying Strong
JPMorgan Chase (JPM) finished the day up 0.71%. This stock is holding above the prior 52-week high of $55.90, which is healthy even if momentum hasn't been blockbuster. Overall the stock looks fine as long as it continues to hold $55.90. Bank of America (BAC) has emerged as another leader within the group as it has seen a solid breakout above the $14 level.
JPMorgan Chase (JPM)
Source: eSignal
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Goldman Sachs (GS) finished the day up 1.15% as it played some catch-up in today's session. This stock was highlighted on Thursday's newsletter as the pattern that was looking more constructive for higher prices as it held the earnings low. This morning it was also listed on the T3Live.com PricePoint Sheet with an action area long at $164.85. This stock could see some short-term resistance at the 52-week high of $168.20.
Goldman Sachs (GS)
Source: eSignal
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Morgan Stanley (MS) gapped up to new 52-week highs Thursday after beating on earnings. As long as this stock continues to hold above $27.15, it could keep the earnings momentum intact. A few more sessions of basing at these current levels could open the doors for a move above $27.95.
Morgan Stanley (MS)
Source: eSignal
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Health Care And Biotech Stocks Are In Play Right Now
AbbVie (ABBV) posted gains of 1.01% as it trades in a tight range. This is a new issue that went public in January. The stock has seen a steady move higher and could see higher prices above $45.20.
AbbVie (ABBV)
Source: eSignal
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Celldex Therapeutics (CLDX) has been on the move lately and is currently forming an upper level flag as the moving averages play catch-up. As long as it continues to hold above upper level support, there could be an additional move higher above $22.
Celldex Therapeutics (CLDX)
Source: eSignal
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Commodities Have Been Bouncing Over The Past Couple Weeks, And Some Forgotten Corners of The Market Are Starting To Get Some Interest, Too
Cameco (CCJ) is a uranium stock that has largely been off traders' radars over the past two years as it has been stuck in a lower range. Today, several uranium stocks ignited, and it could be a sign of resurgent interest in the sector. Cameco is holding higher now in this lower level accumulation pattern. This trade could see a move out of this pattern above $22.40 although it really needs to get above and stay above $22.80 to show commitment to a rally.
Cameco (CCJ)
Source: eSignal
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Rare-earth stock Molycorp (MCP) showed major relative strength in today's session, closing up 7.03%. The stock just broke above the recent flag pattern at $7.32 and is on the move. Use today's high of $7.57 as your new short term point of reference. Minor resistance is $7.90 to $8.00 and above that the next level of resistance is $8.60.
Molycorp (MCP)
Source: eSignal
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At the time of publication the author is long CCJ, SODA, JPM, MCP, MGM, BAC. Short SPY.