An Outside Day with a Higher Close

DJIA + 89.60, +1.17% SP500 + 7.63, +0.95% NASDAQ Comp. + 12.43, +0.82% Russell 2000 + 9.74, +2.34% Exchange NYSE NASD Advancing 2,482 1,935 Declining 1,274 838 Oil $52.77 -$1.21 Gold $935.80 +$12.00 SOX 231.49 +2.68 VIX 42.25 -0.68 The VIX moved down and did confirm the move up in the SPX on Wednesday. Strongest Sectors: XLF +3.33%...XLP +0.98%...XLB +0.90% Weakest Sectors: XLE -0.48%...XLU -0.04%...XLK +0.57% Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU Wow...did you have fun with Wednesday's roller coaster? Stocks opened flat and immediately started to rise with each of the four indices making new highs fueled by better than expected durable goods orders and new home sales. Profit taking seemed to be preceded by comments from Janet Yellen, President of the San Francisco Federal Reserve Bank regarding her view on the threat of deflation and economic recovery. A late rally regained much of intraday pull back. The indices formed outside day bearish harami spinning tops which can be a sign of potential short term reversal if confirmed. The positive side is the close above the 50 DMA and Monday’s S1 short term support level. We continue to stay with the short term up trend while also maintaining our Yellow Alert for a potential short term reversal. (See our comments on this from Tuesday). Be prepared to go with the market up or down. The Financial sector was again the strongest sector. XLF rose 3.33%. Strong financial stocks that gained more than 3.33% on Wednesday included: JPM, USB, BAC, MET, NTRS, WFC, TROW, BK, CME, RF, SCHW and ETF's UYG and FAS. Index Commentary All four indices formed an unconfirmed bearish harami outside day… The DJIA formed a white spinning top, outside day, that closed above the 50 DMA for the third straight day The SPX formed a white spinning top, outside day, that closed above its 50 DMA The Nasdaq formed a doji, outside day, that closed above its 50DMA The RUT formed a white spinning top, outside day, closed above its 50 DMA At the Open on Thursday SPY – hanging man, buyers at 50 DMA MS – hanging man above 200 DMA ESS – doji on 30 DMA GS – hanging man at 200 DMA SNDA – large white candle, +5.29% OSG – bull flag CTSH – bull flag LEAP – bearish engulfing above 200 DMA X – spinning top after reaching $25.08 double bottom price target DLB – bull flag at 200 DMA CRM – hammer, bull flag AMED - double bottom, bullish divergence stochastic Stocks to Watch on Thursday Leading Stocks: Holding Above 30 DMA BIDU, CLB, BKC, NFLX, DLTR, HANS, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, MON, AAPL, CTSH, FLS, JOYG, AMX, APEI, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, PETS, WMT, ATW, GR, BIIB, SLGN, SWN, SYNA, ACN, SNHY, EBAY, GES, RCI, SNA, ORCL, WRC, DECK, HDB, MOS, PCP, UYG, BLUD, PCLN, FAS, FSLR, GME, ESI, WCG, RIMM, NIHD, X Moving Above 30 DMA = 9 BDX, CBST, MCD, MYGN, JW.A, HLF, STRA, BYI, EZPW Moving Below 30 DMA = 0 Staying Below 30 DMA NTLS, PPD. RBN, WAB, CPLA, ESRX, PSYS, CHL, GILD, MHS, TDG, SPWRA, AMED, GXDX, DV, VAR, HLF, PCR, K, AFAM Wednesday’s Action (=> +$0.70 or -$0.70) Moving Up: FSLR, STRA, AFAM, GS, MA, NEM, AEM, GOLD, GDX, GG, GLD, CF, CLF, MS, SCHN Moving Down: BIDU, NUE, BTU, CNX, V, BRCM, HANS, DRYS Intermediate Term Market Trend: Neutral – SPX, Nasdaq, RUT Down – DJIA Short Term Market Trend: Up