Expiration Friday Provided Plenty of Volatiliy and...

DJIA - 100.28, -1.34% SP500 - 8.89, -1.14% NASDAQ Comp. - 1.59, -0.11% Russell 2000 - 5.75, -1.38% Exchange NYSE NASD Advancing 949 826 Declining 2,912 1,994 Oil $38.94 -$0.54 Gold $1,001.80 +$25.70 SOX 197.28 +1.19 VIX 49.30 +2.22 The VIX moved up confirming the move down in the SPX on Friday. Strongest Sectors: XLK +0.97%...XLB +0.79%...XLY -0.67% Weakest Sectors: XLE -2.57%...XLU -2.26%...XLI -1.53% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF …there are strong signs that short-term bottom may be near. As the DJIA dropped to another low and the SPX came within 13 points of its November low, the SPX and RUT formed classic hammer candles and the DJIA formed a hammer-like candle. The DJIA had a bullish cluster for the third straight while the SPX had enough momentum off its low to cause it Momentum and Near Term lines to bounce out of the lower reversal zone today. The Nasdaq formed a WHITE…yes…WHITE spinning top which means it closed higher than it opened. The Nasdaq was down -0.11%, essentially even for the day. Even more significant 8 of the 10 highest priced stocks in the NDX 100 closed higher on Friday: GOOG +1.11%, BIDU +2.79%, FSLR +2.08%, AAPL +0.62%, APOL +5.18%, CEPH +0.80%, GENZ +1.36%, AMZN +3.08%. Of the 10 highest price stocks only ISRG -0.93% and AMGN -0.68% were lower and you’ll notice both down less than one percent. In fact 58 of the NDX closed higher on the day, one JBHT unchanged and only 41 lower. Of the 41 lower, 17 were lower by less than one percent; leaving only 24 were down by more than 1%. No surprise then, that the NDX was up 4.82 points or +0.41% on Friday. If you did not hear the Weekly Wrap live on Friday, (we had over 1,250 people live) take the time to listen to the recording with Scott Sheridan, Dave Johnson and Ben Watson. Scott said almost the same things Dave said in his Thursday night Active Investor Talk webcast about bear market basing action and the more probable opportunities are for the upside not the downside. No one knows the future but you need to understand the market logic and what is most probable. ADBE -7.68% was down graded from Outperform to Neutral by a major brokerage firm. This is, of course, after the stock dropped 56%, from 46 in August to 20 on Thursday. If a 56% drop is Outperform we can’t wait to see what neutral means. RIMM, HOLX and GRMN all which are in down trends were the next biggest losers on the NDX 100 on Friday. PCLN moved higher following its horizontal breakout after better than expected earnings. WMT pulled back after its double bottom breakout. Index Commentary The SPX formed a hammer…watch for a break of the high of the low day on Monday. The DJIA formed a hammer-like pattern…watch for a break of the high of the low day. The Nasdaq formed a spinning top that could be the second candle in a morning star pattern…watch for a break above the high of the low day. The Nasdaq is relatively stronger than the SPX and DJIA. The RUT formed a hammer and could also be the second candle in a potential morning star pattern…watch for a break of the high of the low day. Stock Commentary Many of the Coal, Steel, Rail and Semiconductor stocks formed low days on Friday and many look like a bounce is possible on Monday for a break of the high of the low day. Be alert for opportunities here on Monday. Ag-related stocks bounced either Thursday or Friday. Watch for support bounces in the 22 flag stocks from the NDX 100. The list: CHKP, DISH, EXPE, HANS, ILMN, LLTC, MRVL, MXIM, STLD, XLNX, VRTX, AAPL, AKAM, BIIB, GILD, AMZN, CEPH, GENZ, GOOG, JAVA, RYAAY, SYMC Earnings Friday, Feb 20 ABX +0.32 beat +0.30 moved higher RIO +0.39 below +0.45 moved lower JCP +0.94 beat +0.92 moved up 18 cents LPNT +0.63 below +0.64 moved lower LOW +0.11 below +0.12 moved lower Numbers exclude non-recurring items Monday, Feb 23 BMO – CPB AMC – JWN, ONXX, USNA Tuesday, Feb 24 BMO – CRDN, FWLT, HD, HSIC, RSH, TGT, TASR, WAB AMC – BTUI, DWA, FSLR, HLF, WYNN Wednesday, Feb 25 BMO – DLTR, GRMN, TJX AMC – CLF, ESRX, DAVE, FLS, GNK, NTES, PSYS Thursday, Feb 26 BMO – FRO, GM, MGM, NDAQ, NIHD, PNCL, SHLD AMC – AIG, ADSK, DECK, DELL, GPS, HANS, KSS Friday, Feb 27 BMO – JRCC Stocks to Watch on Monday Leading Stocks: Holding Above 30 DMA NFLX, MYGN, HANS, WRC, GMCR, GES, MHS, MOS, TDG, BIIB, GPRO, VPRT, AMZN, SLGN, AMED, DLB, PSYS, ESRX, GXDX , BIDU, CLB, GME, PCLN Moving Above 30 DMA = 4 APEI, DECK, GILD, MON Moving Below 30 DMA = 2 PCP, RBN Staying Below 30 DMA AAPL, CPLA, CTSH, DV, ESI, VAR, SYNA, WCG, ATW, BLUD, CHL, FLS, ICE, JCOM, JW.A, MUR, ORCL, RCI, SWN, GR, SPWRA, FSLR, HLF, EBAY, AMX, STRA, PCR, PWR, RIMM, BDX, BYI, CAM, PPD, ACN, NIHD, SNHY, JOYG, DLTR, K, BKC, JOSB, JEC, PETS, NTLS, BAP, HDB, CBST, SNA, AFAM, EZPW, WAB, ALGT, AXYS Friday’s Action (=> +0.70 or -0.70) Moving Up: PCLN, MA, NEM, AEM, FSLR, STRA, GOLD, GDX, POT, CF, GG, MON, NUE, AGU, MOS Moving Down: ONXX, AFAM, GS, CLF, MEE, GRMN Intermediate Term Market Trend: Neutral – SPX, Nasdaq, RUT; Down - DJIA Short Term Market Trend: Down