Bears are pushing today trying to move the 8 MA under the 34 MA on the SPX 30-minute chart. UTIL is 475 well above the 468-469 bull-bear line in the sand. JJC is 47.12. Financials turned negative today. The SPX HOD for 2013, today, is 1524.69 and did violate the 12/11/07 top at 1523.57. SPX S/R is 1531, 1528, 1523.57, 1520, 1518, 1513, 1511, 1509, 1505, 1503 and 1502.31 (20-day MA). VIX is 13.19. TRIN is 1.41 which represents steady eddy selling. The 10-year yield hit 2.03% today now at 2.02% remaining elevated so some money is trickling out of notes and bonds.
Note Added 2/13/13 at 3:47 PM: TRIN is 1.42 so the bears are hanging tough. Bears, however, cannot yet push the 8 MA under the 34 MA. CSCO earnings only minutes away and CEO Chamber's comments on the economy and health of the tech sector.
Note Added 2/13/13 at 3:56 PM: Big push higher in the final minutes. SPX is 1520 in the green. TRIN at 1.37 remains elevated and favoring bears.
Note Added 2/13/13 at 4:01 PM: UTIL remained elevated all day. Ditto JJC above 47. The bears flexed their muscles but did not make any real headway. Today is another intraday high for 2013 at 1524.69 and closing high for 2013 at 1520.38. Price pierced the December 2007 top at 1523.57, however, did not close above that top, thus, 1523.57 remains a key number for tomorrow. CSCO is going to be a market mover. Tech needs a shot in the arm and the broad indexes are willing to wait for the CSCO results minutes away, and react in the morning.
Note Added 2/13/13 at 4:07 PM: CSCO is 51 cents versus 48 cents estimate, and 12.1 billion versus 12.06 billion estimate. A beat but revenue only by a hair on its chinny, chin, chin. Margins look good so the stock is bouncing a bit, now up one-half percent to 21.20. The guidance will occur on the call and that is what is needed. Chambers is speaking now.
Note Added 2/13/13 at 4:18 PM: Chambers says they have some growth but their peers in the business are having trouble meeting growth. Cloud market is good, mobility good, video good. Europe was a negative contributor but shows some signs of hope, but split into northern Europe which is turning the corner, and southern Europe, which will remain challenged. In the U.S., government work is keeping them busy. Governments must spend on IT to improve efficiency. Plans for their dough is to return some cash to shareholders, diversify into switching mobile, etc.., not just servers anymore, also acquisitions. Future growth will be outside U.S. unless tax policy changes. Customers say the year is off to a slow start but they are looking for steady improvement this year. Europe is steady and if governments do not execute too badly, there will be ups and downs, improvement should occur but at a slow pace. That was a little bit of a tempered response at the end of the discussion after the prior more rosie talk. CSCO is up 1.6% so traders like what they hear. Listen for the guidance from the call.
Note Added 2/13/13 at 4:26 PM: Blink and the markets change. Now traders decided to lead CSCO out to the shed out back and have started to beat it, Cisco is now down 1.3% AH's. Chambers is seen running across the lawn to a waiting car. Perhaps the insider traders were told the guidance?
This divergence everyone keeps yapping about is akin to voodoo.
ReplyDeleteDo some homework Anon and learn what a divergence is first, learn about their significance and how to use them, then form an opinion. Divergences, negative for shorting and positive for going long, are probably the most important aspect of technical trading.
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