STTG Market Recap May 9, 2013

Stocks pulled back slightly Thursday as investors looked for any excuse for profit taking and to work off an overbought condition.  It was delivered via a market rumor that a Bernanke speech Friday morning would include comments about tapering bond purchases.  Of course just two weeks ago the Federal Reserve meeting added language about increased bond purchases for the first time, so it was a silly reaction but with markets so skewed to the upside any excuse for some minor profit taking would do.   The S&P 500 fell 0.37% and NASDAQ 0.12%.  These are minor scratches; if the market consolidates a few more days in similar fashion it should be ready to make a new thrust upward shortly after.

Both the NASDAQ and S&P 500 are butting their heads with the top of their ascending channels....

spx

nasdaq

The McClellan Oscillator came in nearly 30 points despite very mild selling; a bit surprising.

NYMO

Aside from some names we mentioned with earnings in the after hours yesterday, the ramping of heavily short sold stocks across the market continued - popular names such as Sodastream (SODA) and Lululemon (LULU) had strong days.

soda

lulu

Priceline.com (PCLN) reported after the bell, initial reaction was poor with the stock down 3% to the $715 area.

Priceline (PCLN) crushed first-quarter earnings forecasts, but shares fell 3% late Thursday after the online travel agency gave weak Q2 sales and profit guidance. The company earned $5.76 a share minus special items, up 35% from the year-earlier quarter. That beat the consensus of analysts polled by Thomson Reuters by 49 cents. Priceline beat by 23 cents in Q4 2012.  Revenue surged 26% to $1.3 billion, narrowly topping analyst views of $1.28 billion on strong international bookings. It was the second straight quarter of accelerating growth.  But for the current quarter Priceline expects revenue growth to slow to 15%-22%, with adjusted earnings per share of $8.87-$9.45. Those are below analyst expectations for 23.3% revenue growth on EPS of $9.58.

pcln