After a recent period of weakness, markets are higher today on the heels of stronger-than-expected earnings reports from select retail names. Stocks opened near breakeven, but that was met with strong buying. Equities have trended higher all day, led by the Russell 2000, and currently sit near their highs of the day. While the Russell is higher by nearly 1.5% today, the S&P 500 and Nasdaq are each up about 0.7% each. Today’s relative laggard is the Dow, which is modestly higher, up 0.3%. Bonds are catching a bid today as yields are finally seeing some weakness, while miners are once again higher, up nearly 4% for the session. Gold is slightly higher, while silver is modestly lower for the session.
CHART OF THE DAY
Priceline.com (PCLN) – The online travel company has been on quite a tear this year, up over 40% since January. The shares recently reported better-than-expected earnings and moved significantly higher on that report. Since then, PCLN has filled the upside gap, offering a nice entry from the long side for a continuation of this earnings move.
I like a long entry here with a stop on a close below 920. I would initially target a move back to 990, with an upside break of 1000 possible.
WHAT I’M EXPECTING
I think there’s the potential for some more upside from here, but the major test will come if and when the S&P 500 gets back to 1675. I still think that area should be initially sold, but a break and hold of this resistance area would get me back in the bull camp.