Stocks Bounce With Momentum

DJIA + 200.72, +2.46% SP500 + 28.38, +3.36% NASDAQ Comp. + 53.44, +3.55% Russell 2000 + 17.44, +3.83% Exchange NYSE NASD Advancing 3,247 2,165 Declining 563 615 Oil $42.16 +$0.58 Gold $888.20 -$11.30 SOX 222.59 +5.31 VIX 39.66 -2.59 The VIX moved down confirming the rise in the SPX on Wednesday. Strongest Sectors: XLF +12.80%...XLY +4.25%...XLI +2.87% Weakest Sectors: XLU +0.64%...XLP +1.01%...XLV +1.55% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF Stocks finally bounced off of support with some force on the news of the proposal for the government to buy bad assets from banks. All sectors gained on Wednesday with financial gaining three times more than the second strongest sector. The financial sector has been the one sector recently down trending and the proposal certainly brought fresh buying into the sector. Regional bank ZION gained 27.56% after rising +15.5% on Tuesday. BAC +13.69%c, C +18.59%, WFC +30.88% JPM +10.38%, USB +11.61% Watch the chart patterns on steel stocks: STLD, NUE, SCHN, X and semiconductor stocks: NVLS, MRVL, XLNX, NSM, ALTR, LLTC, TXN Coal stocks bounced on Wednesday: KOL, BTU, CNX, FCL, JRCC, MEE, WLT

Index Commentary The DJIA formed a large white candle that broke through short-term resistance at 8,250 The SPX formed a large white candle that broke through short-term resistance at 860. The Nasdaq formed a large white candle that broke through short-term resistance at 1,525…closed above its 20, 30 and 50 DMA. The RUT formed a large white candle that broke through short-term resistance at 468…closed above its 50 DMA at its 20 and 30 DMA. Earnings Wednesday, Jan 28 T +0.64 below +0.65 estimates BHI +1.41 beat +1.26 est. BDX +1.26 beat +1.15 est. BA +0.62 below +0.78 est. COP +1.28 beat +1.22 est. GD +1.62 beat +1.59 est. HES -0.23 below +0.33 est. PX +1.01 beat +0.96 est. WLP +0.65 below +1.36 est. WFC -0.79 below +0.33 est. ARG +0.76 beat +0.75 est. ALL +0.97 below +1.35 est. CTXS +0.48 beat +0.47 est. KEX +0.72 below +0.79 est. LRCX -0.09 below -0.05 est. OTEX +0.64 beat +0.57 est. OI +0.45 beat 0.39 est. QCOM +0.31 below +0.47 est. SEPR +0.92 beat +0.56 est. SBUX +0.15 below +0.17 est. SYMC +0.42 beat +0.32 est. WDC +0.55 beat +0.31 est. Numbers exclude non-recurring items. Thursday, Jan 29 BMO – MMM, ALK, BUD, AZN, BDK, CELG, CHTT, CL, CNX, CAL, EK, LLY, F, HP, JBLU, LLL, ERIC, OXY, RTN, TROW, UA, LCC AMC – AMZN, BRCM, BCR, CA, DRIV, JNPR, KLAC, MXIM, MCHP, VAR Friday, Jan 30 BMO – AME, ACI CVX, XOM, HON, IVZ, KLIC, FSTR, PCAR, PG Stocks to Watch on Thursday Leading Stocks: Holding Above 30 DMA JOSB…BCO…ROST…ESI…JW.A…MYGN…AMED…BCR…MON…RIMM…SYNA…BLUD…AME…APH…DLTR…STRA…AYE…K…PCP…AET…GES…GME…HP…IIVI…NE…RIO…SWN…URBN…POT…ATW…CAM…CTSH…MOS…NIHD…NOV…RIG…AAPL…BIIB…GIS…JCOM…WCG…ATK…CHTT…DNA…HLF…VAR Moving Above 30 DMA = 17 AGN…BYI…CELG…CIR…ESRX…FLS…GILD…MCRS…MTD…NDAQ…NEU…NGS…PCR…PSSI…RCI…SPN…WMS Moving Below 30 DMA = 1 DV Staying Below 30 DMA LAYN, RTN, CCC, ICLR, TEVA, CERN, FLIR, QSII, JEC, KEX, OSIP, PCLN, PETS, SHW, TECH, UTX, BAP, ACL, AMZN, CL, FWLT, HDB, LNN, OI, ADBE, AMX, CBST, DECK, FLR, MBT, SNA, VMI, AFAM, EPR, FSTR, HAS, LFC, MMM, MTW, SOHU, VIP, NDAQ, ANSS, CHU, EZPW, NILE, PSYS, VIVO, WAB, ENDP, IRIS, ISRG, SPTN, PPD, PRGO, SINA, AXYS Wednesday’s Action Moving Up: GS, MA, SCHN, FSLR, NUE, ZION, SOHU, MS, V, X, POT, KBE, CF, PCLN, ESRX, CLF, KRE, CNX, SINA, COH, AGU, NDAQ, FWLT, ANR, MOS, GRMN, BTU, MEE, INFY, ONXX, NIHD, KMT, DRYS Moving Down: STRA, AFAM, GDX Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Up