October 25, 2012 at 20:34 PM EDT
Holding Cash! SPX, Nasdaq, AAPL, AMZN, VAR, DECK, VRSN, CERN, GLD
After a big plunge on Tuesday, the market has been trading sideways.  Movements were erratic, partially dictated by earnings.  Stocks tried to bounce a bit today, but, caution was still obvious ahead of AAPL and AMZN earnings.  After the market, both AAPL and AMZN reported earnings that missed the estimates.  But, neither stock changed much.  [...]

After a big plunge on Tuesday, the market has been trading sideways.  Movements were erratic, partially dictated by earnings.  Stocks tried to bounce a bit today, but, caution was still obvious ahead of AAPL and AMZN earnings.  After the market, both AAPL and AMZN reported earnings that missed the estimates.  But, neither stock changed much.  Last looked, AMZN was trading down $2 and AAPL was flat. 

Elsewhere, VAR popped +13% on strong earnings and forecast.  DECK sank 14.7% after reporting decline in margin and revenue.  VRSN reported a strong quarter, but, shares slumped 13.56%!  CERN popped more than +10% as its net income rose 25%.

The Dow was up +26.34 points; SPX added +4.22 points; Nasdaq gained +4.42 points:

GDX (gold miners) popped +3.05%, as GLD (gold) and SLV (silver) bounced.  SOXX (semiconductors) added +1.38%.  OIH (oil services) climbed +0.88%.

SPX

SPX added +4.22 points to close at 1412.97.  Its daily MAs and MACD slid.

Nasdaq

Nasdaq gained +4.42 points to close at 2986.12.  Its daily MAs and MACD were also slightly lower.

After Tuesday’s big drop, both SPX and Nasdaq are now showing bearish formations in their respective daily MAs.  VIX has risen above 18, and could test 20.  Earnings have not been all that great, especially not from the bellwethers.  Surprisingly, it’s the smaller, mid-cap companies that have been reactive well to earnings reports.  We have not been trading much as the market has been very volatile and really not fit for trading.  However, given that both AAPL and AMZN held firm after their "non-inspiring" earnings, the market may be ready for a bounce.  Gold has also been a good indicator lately for "risky" assets.  Yes, it’s a bit counter-intuitive, but, gold has been moving with the stock market lately.  GLD bounced a bit today; $168, which was a support, could now be the first resistance.  As for SPX, 1425 to 1430 could present some pressure if the market does bounce.  Dollar has been strengthening, so, we’ll have to see how that plays into the movements in commodities.

I think we’ll see some bounce/consolidating around here.  If the resistance levels get tested, we’ll then have to see if the market can push through or fall back down further.  For now, let’s now trade too much and hold on to cash!

Good night and HappyTrading! ™

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