Stocks Hold Support...Gold Rises...PCLN Reports

DJIA + 3.03, +0.04% SP500 - 0.75, -0.10% NASDAQ Comp. - 2.69, -0.18% Russell 2000 - 5.72, -1.33% Exchange NYSE NASD Advancing 1.009 988 Declining 2,696 1,738 Oil $34.62 -$0.31 Gold $977.70 +$10.70 SOX 205.87 +0.94 VIX 48.46 -0.20 The VIX moved down not confirming the move down in the SPX on Friday. The change in SPX and VIX is insignificant and practically should be viewed as neutral or flat for the day. Strongest Sectors: XLP +0.53%...XLI +0.16%...XLK +0.07% Weakest Sectors: XLU -1.51%...XLY -0.92%...XLB -0.58% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF Buyers and sellers traded to a virtual standstill on Wednesday as the DJIA and SPX formed a doji. DJIA volume was below average. Downward momentum certainly exhausted at least temporarily on Wednesday. There is a bullish cluster on the DJIA and SPX indicating the potential for a short-term reversal. The nine Sector ETFs ranged from +0.53% strongest to -1.51% weakest. Bank stocks were mixed as NTRS, USB, BK STT, KEY and ZION rose. BAC, C, WFC, RF and JPM moved lower. PCLN rose over $8 or almost 13% in after-hours trading after reporting better than expected earnings. BIDU which missed estimates by 1 cent reporting $1.31 on estimates of $1.32 rose more than $3 in after-hours trading. FOSL and WMT continued higher after better than expected earnings.

Index Commentary The DJIA formed a doji top the second candle of a possible morning star at horizontal support. The SPX formed a doji at the S1 level of the Nov 21 large white candle…possible morning star pattern. The Nasdaq formed a spinning top at horizontal support around 1,460. The RUT formed a black candle as it fell below Jan horizontal support and closed near Dec 420 support area.

Stock Commentary Our list of 22 Bull Flags from the NDX 100 continued to consolidate in their flag pattern. Several formed a new low day and some moved up on Wednesday. Watch for a break above the high of the low day on Thursday. If they don’t bounce don’t trade them yet. The list: CHKP, DISH, EXPE, HANS, ILMN, LLTC, MRVL, MXIM, STLD, XLNX, VRTX, AAPL, AKAM, BIIB, GILD, AMZN, CEPH, GENZ, GOOG, JAVA, RYAAY, SYMC Coal stocks and steel stocks moved lower: KOL, BTU, CNX, FCL, JRCC, MEE, WLT, STLD, NUE, SCHN and X. Rail stocks BNI, CSX and UNP each formed a bullish harami and NSC formed a spinning top.

Semiconductor stocks ALTR, LLTC, MRVL, NSM, NVLS, TXN and XLNX showed signs of support buying.

Earnings Wednesday, Feb 18 AVA +0.32 below +0.39 moved lower XEC +0.32 below +0.45 moved lower CMCSA +0.27 beat +0.22 moved lower CEG +0.03 below +1.24 moved lower DE +0.48 below +0.63 moved lower GT -1.22 below -0.97 moved higher JAKK +0.55 below +1.05 moved lower OMX +0.02 below +0.15 up 3 cents STP -0.27 below -0.26 moved lower AAP +0.51 beat +0.37 AEM +0.15 beat -0.01 CBS +0.34 beat +0.26 BIDU +1.31 below +1.32 NILE +0.24 below +0.35 DENN -0.03 below +0.06 DBRN -0.02 below +0.01 HPQ +0.93 inline +0.93 NHP +0.56 inline +0.56 NTRI +0.16 below +0.20 OII +0.93 inline +0.93 PCLN +1.29 beat +1.05 SNPS +0.50 beat +0.41 WFMI +0.20 beat +0.15 Numbers exclude non-recurring items Thursday, Feb 19 BMO – APA, CCC, CTL, DSX, EV, EXPE, GM, GG, HOS, MGM, NEM, PDCO, PNCL, RS, SPAR, S, TRAD, WST, XTO AMC – BUCY, CECO, CYH, RIO, DRYS, HE, JCOM, OIS, OSIP, RRGB, TSO, VLCMWBMD Fri Feb 20 BMO – ABX, JCP, LPNT, LOW, Learn the Discipline The Model Portfolio was stopped out of positions in BLUD and LLTC on Wednesday. The portfolio entered 34 shares of DV at 57.41 with the initial stop at 54.75. There are seven open positions. Stocks to Watch on Thursday Leading Stocks: Holding Above 30 DMA NFLX, ESI, MYGN, APEI, HANS, WRC, GMCR, PCP, GES, MHS, MOS, TDG, AAPL, BIIB, GPRO, VAR, VPRT, AMZN, SLGN, AMED, DLB, PSYS, CTSH, ESRX, CPLA, GXDX , DV Moving Above 30 DMA = 1 BIDU Moving Below 30 DMA = 3 RBN, SYNA, WCG Staying Below 30 DMA ATW, BLUD, CHL, FLS, GILD, GME, ICE, JCOM, JW.A, MUR, ORCL, PCLN, RCI, SWN, GR, MON, SPWRA, FSLR, HLF, EBAY, AMX, STRA, PCR, PWR, RIMM, BDX, BYI, CAM, PPD, ACN, NIHD, SNHY, JOYG, CLB, DLTR, K, BKC, JOSB, JEC, PETS, NTLS, BAP, HDB, CBST, DECK, SNA, AFAM, EZPW, WAB, ALGT, AXYS Wednesday’s Action (=> +0.70 or -0.70) Moving Up: STRA, MA, POT, V, CF, MON, MOS, AGU, HANS, SOHU Moving Down: FSLR, SCHN, X, NUE, PNRA, UAUA, GS, BTU, CLF Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down