We purposely put out support levels yesterday. Simply put, they either hold and give markets a chance or they give way and all heck potentially breaks loose. Why would all heck break loose? This occurs when the big money recognizes an area that was holding…no longer is…which invites more selling. But major indices held on Thursday but remain rangebound. We hate the word rangebound. We are not even sure if it is a word but we use it anyhow. Rangebound action simply holds in the downside but caps the upside. For obvious reasons, this makes trading tougher as you have neither wind at your back or wind in your face.
But lots of jello moving on the plate as earning’s season has handed us a bunch of good reactions in the form of gapping up or breaking out on volume. Names that have shown this action include AMZN,BIIB,BA,EA,FSL,HAR, NFLX,NOW,SYNA,SBUX and others. Just because something breaks out or gaps up on earnings does not mean it will work. Names like those mentioned should be reviewed as it is usually good news when surprises occur on the upside and stock price moves in the fashion mentioned.
We will have our usual big weekend report along with our thoughts on the Super Bowl and our pick. We have only lost one Super Bowl since 2000 but must say, this game is quite tough to handicap.