STTG Market Recap July 21, 2014

Indexes opened quite significantly down on a number of geopolitical items (Russia, Gaza) but a steady line of buyers came in throughout the session and by the end of the day losses were minimal.  The S&P 500 fell 0.23% and the NASDAQ 0.17%.  There was not much going on in the economic sphere; most were discussing the issues overseas and if there will be any contagion.

The NASDAQ is in a mini downtrend as we painted on the chart with a purple downtrend line.  Bulls will want to see that breached to the upside to try to change this short term pattern.

spx

nasdaq

The NYSE McClellan Oscillator is still firmly negative which we’d prefer not to see (positive is better) but if we see selling in the next few sessions we should enter another oversold period which most likely would lead to a short term slingshot as we saw Friday.

nymo

It is very interesting from this set of eyes that the emerging markets have held up VERY well after a knee jerk reaction down last week; usually when people are worried about geopolitical items this is one of the areas they leave first; instead the ETF EEM is almost at highs.

eem

Herbalife (HLF) dropped after Pershing Square’s Bill Ackman, who is short the stock, told CNBC he would present evidence on Tuesday that the company is an “incredible fraud.”

hlf

After the market closed, Netflix (NFLX)  reported a quarterly profit that more than doubled from a year ago, sending shares up 0.7 percent; this is very modest compared to the normal reaction to its earnings.

Netflix Inc’s quarterly profit more than doubled, boosted by a $1 monthly increase in its most popular video streaming plan for new customers in the United States.  The company also said it expected average revenue per user to rise slowly as it wins over more subscribers at the new prices.

The company increased the price of its most popular video streaming plan by $1 per month to $9 for new customers in the United States in May — the company’s first price hike in its largest market in three years. Netflix said it added 570,000 U.S. customers in the second quarter ended June 30. It added 1.12 million customers in international markets.

nflx

Chipotle Mexican Grill Inc jumped 10% after the market closed after reporting second-quarter revenue that sharply exceeded Wall Street’s expectations.

Chipotle Mexican Grill Inc, one of the top-performing U.S. restaurant operators, on Monday reported a nearly 26 percent jump in quarterly profit after traffic to the burrito chain surged despite a menu price increase. Sales at Chipotle restaurants open at least 13 months, a closely watched gauge of industry performance, increased 17.3 percent for the quarter, blowing past 23 analysts’ average estimate for a gain of 10.5 percent. Chipotle reported a 13.4 percent same-restaurant sales rise for the first quarter.

cmg

 

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