STTG Market Recap January 25, 2013

Rinse. Wash. Repeat.  Rally out of the gates.  Mid morning selloff.  Afternoon buying.  It has been the pattern for just about every day in 2013.  Until this changes, traders will keep singing the same tune.  Friday the S&P 500 gained 0.54% and the NASDAQ 0.62%.  This was the 8th straight day of gains for the S&P 500.  Indexes continue to levitate away from any real support but thus far no real selling pressure or reversion to mean.   The only real news of the day was new home sales which came in light on the day but despite that people still piled into the home builder stocks.  Talk about a frothy environment.

The S&P 500 has levitated away from any meaningful support here and you can see the intraday highs the past two days have perfectly coincided with the top of our ascending channel.

The NASDAQ is still weighed by the dismal performance of Apple – down another 2.4% – but had a good performance in light of the fact its top component was so poor.

While we are in a constant state of overbought in 2013 the lack of huge up days does not push the McClellan Oscillator into extreme overbought stages often.  It’s just a drip drip higher, very consistent.

I mentioned the home builders earlier – note the performance today despite data that was disappointing.

We continue to get the rotation from one sector to another – this week both healthcare and consumer discretionary saw nice moves as previous weeks leaders rested some.

Interesting factoid of the day - ExxonMobil (XOM) has once again passed Apple (AAPL) as the highest market cap stock in the U.S.

Apple is now $257.84, or 37%, below the record high of $702.10 it reached Sept. 19.  Apple first surpassed Exxon in market value in the summer of 2011, grabbing a title Exxon had held since 2005. The two traded places through that fall, until Apple surpassed Exxon in early 2012.

As for commodities, while nowhere near as strong as many stocks (not near 52 week highs) we have a potential bull flag forming in oil…

Gold remains in the no man’s zone…

Whereas silver played a nastry trick, feinting a potential breakout before rolling right back over.  It still does not act healthy.

Next week we have the end of the month and towards the end of the week some key economic reports so we’ll see what it takes to see a negative day around here.

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