From: This sender is DomainKeys verified"ekolodny2@yahoo.com"
I used to love love love love love Saturday morning cartoons and really good sitcoms when I was younger. One of the frequent comedic guises used on the cartoons (as well as in countless sitcoms) occurs when the protagonist gathers his/her friends (aka "troops") in leading some in some hair-brained scheme. They are all in it together. And the next scene shows the one or two leaders...with nobody behind them as they talk to themselves all gung-ho about whatever it is they were gonna do. That's what Friday's tape in particular (although it's happened a couple other times as well in recent days) felt like. The Dow marched ahead 75 points but the NASDAQ and S&P 500 struggled to close positive. Apple (AAPL) was weak for a 2nd day and many other sectors performed badly (anyone notice Freeport McMoran - FCX- closed near its 2011 low?). When the generals are there but the troops don't follow in a bull market, that historically portends some sort of change whether it be sector rotation or a pullback. I discussed this on Friday afternoon on our video in indicating I was looking for an immediate-term pullback and I write this now on a Sunday morning as I watch scenes of unrest in Libya- an oil producing nation. Libya is not Egypt. So, definitely keep your eyes peeled for what it is almost certain to be a different kind of market for the next few weeks particularly in individualized names and sectors with a definitive pick-up in volatility.
Markets have been hit very hard the last couple of days throughout the world with 2-4% declines commonplace throughout the world. The dollar has been amazingly placid but gold prices have rallied along with bonds and light sweet crude has soared several dollars a barrel. Case-Shiller (-2.4%) is due out at 9AM with Consumer Confidence (67.0) due out at 10AM. The main culprit the last few days has been a major uprising in Libya (more on this in tomorrow’s blog). There is now wholesale worry that the crisis is going to spread throughout the Middle East. Futures are sharply lower (although a bit off of their lows). For today, with some traders out, look for a volatile session on slightly lower than normal levels of activity with a focus on energies, earnings plays, small cap biotechs in the news, big cap tech in the news, and relative strength plays.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.
If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-
Good- The following stocks have good news and/or a strong technical pattern
RRGB- closed near a high after posting earnings
INTU- closed near a high after posting earnings
ARUN- closed near a high after posting earnings
APEI- closed near a high after posting earnings
ASGN- closed near a high after posting earnings
ALNY- closed near a high after posting earnings
MMSI- closed near a high after posting earnings
IT- closed near a high after doing a secondary offering
PDCO- closed near a high after posting earnings in an island reversal
SGI, IRDM- featured on “Mad Money” on Friday night
ATHN- announced alliance with MSFT
CHK- selling $4.75 billion n shale assets to BHP
HD- decent earnings
TSL- decent earnings
VFC- decent earnings
M- decent earnings
SIGA- commenced new smallpox antiviral procurement
Bad-The following stocks have bad news and/or a weak technical pattern
AAPL- closed near a low amid iPhone margin pressures and worries over the health of Steve Jobs
RST- closed near a low after posting earnings
CF- closed near a low after posting earnings
CKH- closed near a low after posting earnings
TA- closed near a low after posting earnings
BCSI- closed near a low after posting earnings
GHL- closed near a low after a brokerage cut
POT, MOS, MON- closed near their lows
FCX- closed near a low
MEE- closed near a low
AMZN- closed near a low
BIDU- closed near a low
MCP- closed near a low
HOC- closed near a low
PANL- closed near a low
SVVS- closed near a low
VECO- closed near a low
HOLI- closed near a low
FTO- to be acquired for .4811 shares of HOC
DYN- announced termination of merger agreement with Icahn Enterprises; top officers and directors to resign
DCTH- received refusal to file letter from FDA
JASO- poor earnings
MDT- poor earnings
WMT- poor earnings
FRX- to buy CLDA for $30/cash plus contingent consideration of up to $6/share
BKS- poor earnings
AMED- poor earnings
NFLX- AMZN quietly rolled out instant video streaming service according to SAI
Earnings:
TUES FEB 22 BEFORE
AMED BKS EXPD
FST GPC HD
HK JASO M
MDT MHS ODP
RRD TSL TX
VFC WMT
TUES FEB 22 AFTER
CBI CHK EXEL
HLF HPQ HTZ
LEAP MHK ONXX
RSH STR TXRH
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
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