(INDEXSP:.INX) narrowly made another new all-time high Monday in a
quiet session. After extending above the psychological 1,600 level
for the first time ever Friday, thanks to a much
better-than-expected jobs report, it feels like the index could use
some rest. Short-term moving averages need time to play catch-up,
but just because the market doesn't feel like a compelling long at
this point doesn't mean it's a short. Market tops are marked by
widespread euphoria and that does not seem to be the prevailing
feeling right now. The
(INDEXDJX:.DJI) finished down 0.03% while the
(INDEXNASDAQ:.IXIC) showed relative strength, gaining 0.43% vs. the
S&P's 0.22% gain.
While the indices were somewhat quiet today, the stock specific
action continues to be outstanding from traders' perspective.
) was one of the biggest winners on the day, gaining 1.76% and
breaking out of a multi-week base to another new all-time high. The
stock remains in a steep uptrend since October 2011, gaining 140%
in that time.
) resurgence continued as it showed relative strength again today
with a 2.38% gain. We have observed with AAPL before that when it
is really "ready to go," it hardly gives traders a way into the
move. Since earnings, that has been the case with AAPL, as it has
hardly had a down day to allow traders to "buy the dip"
comfortably. AAPL has an open gap at the $500-515 area, and we
could see the stock get back to that level within the next month.
A theme we have touched on often recently is strength in some very
highly-shorted stocks. Within that group,
) is one of the most highly-shorted, and has been one of the best
and most consistent performers. The electric-car maker reports
earnings on Wednesday, and traders/investors are buying the stock
higher into the announcement. TSLA accelerated to the upside today,
making new all-time highs on a 9.07% gain.
) has been another focus within that highly-shorted group, and the
company reported earnings after the bell today. After gaining 3.67%
in today's session, the company fell short of EPS expectations but
is still trading almost another 2% higher after-hours.
Marc Sperling is long MBI, GS, AMGN, AGU, FB, KERX, C, FFIV,
AMPE, CMG, TBT, CF, BBRY, MCP, FAS, FIO, CRM, ANTH, INTC, SHOS.
Long calls in the following stocks: AAPL, FSLR, LNKD, GMCR, CF,
EXPE, GS, GNRC, FB, AWAY, VHC, BIDU, BBRY, TBT, MCP, ZNGA, AMGN.
Short SPY. Long puts in GLD.