Market Direction today ended up pretty much as expected with a sideways movement for most of the day. The close saw a quick bounce at the last minute. Whether that push up in market direction right at the close is a signal of what is to come, we will know better once we look at the market direction technical indicators from today’s close.
Market Direction Action Jan 14 2013
The big news in tech stocks today had to be Research In Motion which closed up another 10% on top of Friday’s big move. But at $14.70 is still pales in comparison to where the stock once was. A lot of talk is surrounding the BlackBerry 10 release and while some analysts are getting downright bullish, others are claiming it is too late to win back customers to BlackBerry. Indeed I no longer have my BlackBerry but I did think this weekend was interesting. A number of my younger nieces and nephews were at a party on the weekend and I noticed they all had Samsung devices. When I asked them about the iPhone and showed them mine, they told me that it’s a device for people over 40 and not for them. As to the BlackBerry they just laughed and left it at that.
Indeed some of the latest ads Samsung is running shows 40 somethings holding their not too small iPhones while the “younger” couples are busy texting and surfing on their Samsung smartphones. Finally, a good friend is a CEO of a large company and I spoke with him about the BlackBerry because he use to be a medium size customer of Research In Motion. He told me there’s no going back unless the BB10 is simply too amazing for business use to do without. He somehow doubts that will be the case.
Time will tell, but none of this sounds good for Research In Motion and Apple and their respective stocks.
Meanwhile Apple Stock today fell below $500 for a short time and then closed higher. I entered my Apple Stock Put Selling biweekly trade today. You can review the trade through this link.
Big news out of Dell was nothing but a rumor that Michael Dell was in talks with investors trying to take his company public. The stock jumped 10% on the rumor before halting was stopped on the stock due to 10% rule. At the end of the day the stock was up 12.96 % to $12.29.
After hours Lululemon shares were down 7 percent after they increased their earnings outlook for the fourth quarter but were still coming in below analysts average estimates.
Market Direction Closings
The S&P 500 closed at 1470.68, down 1.37 points and the Dow closed at 13,507.32, up 18.89 points for a fourth straight gain. The NASDAQ was dragged lower by Apple Stock to close at 3117.50 down 8.13.
Market Direction Technical Indicators of Jan 14 2013
Let’s take a moment now and review the market direction technical indicators at the close of today on the S&P 500.
Market Direction Technical Analysis for Jan 14 2013
For Momentum I am using the 10 period. Momentum is still solidly positive. Today momentum continued to climb despite the market direction drifting sideways. This is a bullish indication on market direction and is advising that the market direction higher will resume shortly.
For MACD Histogram I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) is still positive and while pulling back a bit today with today’s market direction weakness, there is no sign from MACD that advises that there is any concern on market direction not moving higher.
The Ultimate Oscillator settings are Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
The Ultimate Oscillator is still positive and is back climbing into overbought territory. In my market direction comments intraday, I indicated the concern that momentum and the Ultimate Oscillator are showing. Presently the Ultimate Oscillator is now reading 75.21. The previous high in the Ultimate Oscillator was 77.46 on Jan 7. Today’s reading is very close to Jan 7th reading. Therefore there remains a lot of strength and market direction tomorrow could easily push the Ultimate Oscillator to 77. My concerns from intraday are probably not very valid at this point based on the readings at the close today.
Rate Of Change is set for a 21 period. Rate Of Change is still positive and despite Friday and today’s close, the rate of change is moving higher. This is a signal that market direction is about to push higher still.
For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is overbought to the extreme and is still signaling that market direction will be higher in two or three days out. In other words, market direction will be higher later this week.
For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings but settings I set for the 1 to 3 month S&P 500 chart when it is set for daily. The Fast Stochastic is also extremely overbought but it is indicating the market direction still is up. This is very bullish for market direction on the S&P 500. It does not necessarily mean that we will be moving straight up but it does signal that dips like today are buying opportunities for stocks that pulled back slightly. For those of us who love Put Selling, this market direction signal from the Fast Stochastic is telling investors to engage in Put Selling wherever trades present themselves as the market direction will be higher shortly.
Market Direction Outlook And Strategy
The market direction outlook for Tuesday January 15 2013 is to see perhaps a weak start but the overall market direction is higher. Stocks will probably move up tomorrow, if only slightly but according to the market direction technical indicators the S&P 500 should close higher than today’ s close.
I noted that Doug Harris with his market direction portfolio adjusted his position again today. FullyInformed Members might want to check out his comments for today.
Meanwhile any dips are strong trading opportunities as presently all signals still point to the market direction moving higher and probably challenging the 2007 all-time high in the S&P 500 which was intraday on October 11 2007 at $1576.09.
But I don’t want to get ahead of myself on guessing at market direction reaching that high especially with the debt ceiling debate ahead of us. Market Direction can change on a dime right now.
We are presently sitting at 1470.68 just $106 lower than the all-time high. When that high is breached be prepared for bears and doomsayers to enter the market direction arena and talk in disbelief and point out every doom and gloom scenario on market direction possible, because in the end the doomsayers and perma-bears were wrong and most stocks and the market indexes will have recovered from the worst financial crisis since the Great Depression…. who would have thought it possible – certainly not the bears and prophets of doom.
Internal Market Direction Links
Understanding Short-Term Signals
Market Direction Candlestick Daily View (Members only)
Market Direction Portfolio Ongoing Trades (Members only)