The market essentially hasn’t done much of anything this week.
So far, the NASDAQ has managed to climb higher by 3 points or 0.09%, while the S&P 500 has been able to tack on 2 points of gains or 0.16%, while, lastly, the Dow Jones Industrial Average has declined only by 0.07% in its 10 point drop. So, at least going off Wednesday’s closing prices — and continued lack of big moves early this afternoon — one can make a solid case that this week has been all about nothing.
However, while the market has gone nowhere this week, it’s not limited to just an index or two. It’s actually a whole lotta nothing with the exception of individual names moving on specific news.
Cliffs Natural Resources (NYSE:CLF), for example, reported earnings and slammed down more than 20%. In the past, this was a poster child stock for global growth and a recovering economy.
Additionally, stocks like VMware (NYSE:VMW) in the cloud space continue to tank to new 52-week lows just like we have seen in other momentum names like Apple (NASDAQ:AAPL) recently.
So, while investor perception might be that this market is fine, it really all boils down to what you are in. Michael Kors Holdings (NYSE:KORS) had great earnings and a fairly good positive reaction in the higher end consumer retail sector. Conversely, if you look at Coach (NYSE:COH), you would think the sun was going to explode.
A few other names that have been recently slammed include Rackspace (NYSE:RAX), Stamps.com (NASDAQ:STMP), CenturyLink (NYSE:CTL), Itron (NASDAQ:ITRI), TripAdvisor (NASDAQ:TRIP) and Weight Watchers (NYSE:WTW), which were all falling in after-hours trade, some 10%-20% each.
So what’s a trader to do in this situation? I have seen a lot of money shifting to high yield trades, and I would recommend following, as I explain in this video.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.
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