Major markets were mixed on higher volume due to options expiration. The NASDAQ Composite was lower due to tech juggernauts Apple (AAPL), Google (GOOG), Microsoft (MSFT), and Intel (INTC) weighing on the index. Meanwhile, the S&P 500 finished up after being down for much of the day, closing near the peak of its trading range. The NASDAQ therefore logged a distribution day while the S&P 500 logged an accumulation day, continuing its uptrend. Even though the NASDAQ fell, it remained quite resilient given the number of disappointing earnings from big tech. Earnings were also a touch weak in the prior quarter, yet the major markets, after some minor turbulence, have continued to trend higher. It seems as if markets may continue this type of resilient action, especially given that announcements regarding any slowing of quantitative easing have already been digested by the markets. Thus, QE3 seems likely to carry the markets higher.
The global tend towards more QE, not less, was also confirmed over the weekend by the victory of Japanese Prime Minister Shinzo Abe's party, thus ensuring the continuances of "Abenomics" which consists primarily of the Japanese Central Bank engaging in extreme QE measures in an attempt to re-inflate and allegedly stimulate its economy.
Lumber Liquidators (LL) had a pocket pivot in Friday's trade. That said, it had a prior steep correction on heavy volume so conservative investors could wait until LL at least clears its double bottom midpoint at 89.24. Institutional sponsorship has grown over the last 6 quarters, and earnings and sales have accelerated.
SLM Corp. (SLM) had a buyable gap up in Friday's trade after reporting strong earnings. After a mid-bar close on Friday, it is still in buying range. Institutional sponsorship has increased 8 quarters in a row and earnings accelerated strongly in the latest quarter, up 92% compared to the same quarter a year ago.