Morning Update: 2/14/2012

9:15 am…

The week started off with a bang as the stock market indices gapped up big time, but then pulled back sharply to do retesting at about 2555 on the Nasdaq 100 and 1346 on the S&P 500. That held, and they rallied back in stair-step fashion to reach new highs today at 2572.60 on the NDX and 1353.35 S&P 500, although 1353.35 was not higher than last Thursday‘s high, and we did not get a confirmation on the new NDX high today.

Net on the day, the Dow was up 72.81 at 12,865.04, the S&P 500 up 9.13 to 1351.77, 14 points off its high, and the Nasdaq 100 up 22.17 at 2569.49, 3 points off its high.

Advance-declines were better than 3 to 1 positive on the New York Stock Exchange, and 3 to 1 positive on Nasdaq as well. Up/down volume was 3 1/2 to 1 positive on New York, with total volume a light 675 million shares traded today. Nasdaq traded about 1.58 billion shares, and had an 11 to 4 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply at the opening, pulled back, and then rallied the rest of the day until the last hour when they pulled back again only to snapback in the last 10 minutes to close very positive on the day on good technicals.

I had one trade yesterday… NQ

NQ was a balance extreme short in which I was able to take profit on a portion of the balance and was stop out on the rest.



07:30 USD NFIB Small Business Optimism 93.9 95.0 93.8
08:30 USD Retail Sales (MoM) 0.4% 0.8% 0.0%
08:30 USD Core Retail Sales (MoM) 0.7% 0.6% -0.5%
08:30 USD Import Price Index (MoM) 0.3% 0.3% -0.1%
10:00 USD Treasury Secretary Geithner Speaks
10:00 USD Business Inventories (MoM) 0.4% 0.3%
11:30 USD 4-Week Bill Auction 0.060%


Directional Tuesday!  Game plan is to take a swing play when price reaches a high probability trading zone.


Olof Thomas


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