Stocks Rise as Stimulus Bill Over Powers Weak Unemployment

DJIA + 217.52, +2.70% SP500 + 22.75, +2.69% NASDAQ Comp. + 45.47, +2.94% Russell 2000 + 15.62, +3.43% Exchange NYSE NASD Advancing 3,113 2,061 Declining 696 703 Oil $40.17 -$1.00 Gold $913.90 +$0.30 SOX 229.18 +7.87 VIX 43.37 -0.36 The VIX moved down confirming the move up in the SPX on Tuesday. Strongest Sectors: XLF +7.46%...XLF +3.43%...XLB +3.00% Weakest Sectors: XLU +0.64%...XLV +0.81%...XLP +1.72% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF Stocks made large gains on Friday driven in part by the expectation of the Stimulus Bill that is currently before the Senate. As we stated earlier the market looked past the worst unemployment report in over 30 years. An excellent example of how the market is a futures market and not a histories market. The Financial Sector XLF +7.46%, and Technology XLK +3.43%, were clearly the leaders in Friday’s market. Strong financial stocks included BAC, WFC, KEY, JPM, C, STT, ZION, PNC, USB, TROW, CME, SPG and AXP. Strong tech stocks included AAPL, GOOG, QCOM, MSFT, CSCO, RIMM, AMZN, INTC, ORCL, ADBE, EBAY and SYMC. AKAM rose 4% and formed a doji which could be a potential evening star after rising 18% breaking out of horizontal resistance on Thursday. A pullback to a higher low could represent an entry point. AMZN broke out of a horizontal flag and its 200 DMA on Friday. Index Commentary The DJIA formed a large white candle on Friday that closed above its 20 DMA…watch the 20 DMA and S1 of Friday’s candle as short-term support areas. The SPX formed a large white candle on Friday that closed above its 20 and 30 DMA and less than one point under its 50 DMA…watch the S1 level as short-term support on Monday. The Nasdaq formed a large white candle that broke through the horizontal resistance area of 1,568…next horizontal resistance 1,665…is above its 20, 30 and 50 DMA. The RUT which had been relatively weak on Thursday was the strongest of the four indices of Friday…formed a large white candle that closed above its 20, 30 and 50 DMA…horizontal resistance area at 475. Stock Commentary Rail stocks... BNI, UNP and NSC broke out of horizontal resistance. CSX broke out of a double bottom. Steel stocks... STLD, NUE and SCHN broke out of horizontal resistance. X rose to horizontal resistance. Semiconductor stocks... continued to rise as XLNX, ALTR, NSM, MRVL moved to horizontal resistance LLTC and TXN rose above horizontal resistance NVLS support bounce Coal stocks... KOL, BTU, JRCC, CNX, FCL, MEE and WLT moved higher Earnings Symbol Earnings Estimate Friday, Feb 6 BIIB +0.93 inline +0.93 Numbers exclude non-recurring items Mon Feb 9 BMO – BZH, CAN, ENER, HAS, SOHU, WHR AMC – LNC, PFG, PKY, VRTX Tues Feb 10 BMO – CVH, DTV, ICE, MDC, OMC, PBG, Q, TRA AMC – AMX, AMAT, CERN, CF, CSC, EXPD, MVSN, NVDA, SWIR, SIAL, VFC Wed Feb 11 BMO – AGU, AYE, CCE, GENZ, MMC, MICC, NICE, SKYW AMC – ATVI, CMG, CLB, RE, INSP, LVS, LOOP, MOH, NTAP, STR, RNR, TCO, TEX, TQNT Thur Feb 12 BMO - AET, CPLA, KO, ECA, GCL, CLI, MAR, MLM, NXY, NRG, NWN, ZEUS, PTEN, RSH, REV, STRA, TASR, ULBI, WMI AMC – ACAP, AGII, BIDU, COG, CEPH, CAKE, DRYS, ENH, GDI, MFE, NTGR, PNRA, RNWK, TK, WCLK, WYNN Fri Feb 13 BMO – ANF, ALE, BAM, CTSH, ENB, PEP, WYN Stocks to Watch on Monday Leading Stocks: Holding Above 30 DMA NFLX, BDX, ESI, JW.A, MYGN, CLB, RIMM, SYNA, BLUD, APEI, HANS, STRA, WRC, GMCR, PCP, GES, GME, MHS, SWN, MOS, PWR, TDG, AAPL, BIIB, GPRO, GXDX, JCOM, WCG, VAR, BIDU, GILD, RCI, VPRT, FLS, ESRX, SLGN, ATW, CPLA, CTSH, FSLR, PCLN, RBN, AMED, CHL, CSCO, DLB, ORCL, PCR, PSYS Moving Above 30 DMA = 5 AMX, CAM, DV, HLF, PPD Moving Below 30 DMA = 0 Staying Below 30 DMA DLTR, K, BKC, JOSB, BYI, MUR, WMS, JEC, PETS, NTLS, BAP, HDB, CBST, DECK, AFAM, EZPW, WAB, ALGT, ICE, SPTN, PRGO, AXYS Friday’s Action Moving Up: POT, GS, MOS, X, CLF, SOHU, MA, CNX, CF, INFY, AGU, SCHN, KBE, FWLT, NDAQ, ANR, BTU, KRE, V, NUE, MON, ZION, RF, KMT, NIHD, PCLN, HANS, ADM, AEM, GDX, COH, ONXX, LAMR, MEE Moving Down: FSLR, STRA Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Up