STTG Market Recap February 12, 2014

Stocks had a quiet session Wednesday, digesting another huge V shaped bounce from the middle of last week.  The S&P 500 fell 0.06% while the NASDAQ gained 0.13%.  After large, quick moves up bulls want to see a bit of digestion before embarking on the next attempt upward.  News flow was slow for the day.

We have our longer term index charts posted today; this NASDAQ chart continues to amaze as it repeats the same pattern over and over – much more apparent on this longer time frame.

nasdaq

spx

After the close Whole Foods Markets (WFM) issued a miss on this earnings report and disappointing guidance and the stock is being slammed down 7%+ to the $51.50s.  This type of chart usually offers hints that something is amiss as the stock has been creating lower highs as the market has rallied and/or gone sideways.

Shares of Whole Foods Market Inc. dropped in after-hours trading after the grocery chain reported fiscal first-quarter profits and revenue fell below analysts’ forecasts. The Austin, Texas-based grocery chain, known for its organic and natural food offerings, also lowered its earnings projections for the year and pared down its top end of its full-year revenue guidance.   The latest results show that Whole Foods is facing an increasingly competitive landscape. The chain had been able to boost sales in large part because of its healthy product selection fits with Americans’ changing eating habits. But more mainstream players like Kroger Co. are increasingly tapping into that trend as well, and rolling out more products or sections labels as natural or organic.  Revenue at stores opened at least a year rose 5.4 percent. Analysts were expecting a 5.6 percent gain. The figure was slower than the 5.4 percent increase in the previous quarter and below the 7.2 percent pace seen in the year-ago period.

wfm

Despite all the talk of slowing China and a tough time in emerging markets in 2014, Caterpillar (CAT) which is very tied to these type of markets for growth has had a nice 2014 thus far; this was one of the key slugs of 2013 so it could be a game of catching up to a lot of other names that had a big 2013.

cat

Amazon.com (AMZN) fell after UBS downgraded the online retailer to neutral from buy.

amzn

There are some internet names at or near recent highs; watching for what rallies to a recent high before the indexes is one way to identify potential new leadership stocks.  While online real estate co. Zillow (Z) has some issues on its intermediate term chart, it is trying to build out of congestion here in recent weeks.

z

Meanwhile, Priceline (PCLN), after testing the top of a multi month range yesterday, broke out today on nice volume.

pcln

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