Minyanville's T3 Daily Recap: Market Gets Much Needed Rest, Apple Blocks 'Buy the Dip' Traders

By T3Live.com,

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The S&P (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 Dow (INDEXDJX:.DJI) finished down 0.03% while the Nasdaq (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.

Home Depot ( HD ) 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.

Apple's ( AAPL ) 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, Tesla ( TSLA ) 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.

First Solar ( FSLR ) 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: AAPL , FSLR , HD , TSLA

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