Market Finishes Up on GDP Report

First Quarter GDP was revised higher as the economy grew slightly more than expectations. The market has caught a tailwind off the report, and the Dow is moving towards resistance levels around 12,700 - 12,750. The Oil Inventory Report showed a huge drawdown, which is normally extremely bullish for Energy stocks (and also inflationary). However, the Energy Department said that the supply drop was due to "temporary delays" in supply. As a result, traders don't know what the real supply levels are, and when traders don't know something, their First Commandment of Trading says Sell! So this is a knee-jerk reaction to the information vacuum. For now, I am going to see how it plays out before I do anything. My guess is this: now that the rest of the market is up today, traders are being driven to buy over there and continue to dribble away their Energy and Commodity stocks. However, if and when the market rolls down a little from resistance, then they will probably have a mini-rotation back, where they sell a little of the other stuff and buy a little Energy and Commodity stuff.

In the meanwhile, here is what I have done so far today: I sold AMZN into the little gap up this morning for a small, .17 cent gain. I also sold RL for a very nice 1.10 gain, or 19% profit from mid-day yesterday to this morning.

1:50 pm MT: I culled a bit with the Energy positions: I sold NE for a .90 cent loss, I sold BHI for a .22 cent loss, and I sold HAL for a .30 cent loss. I also sold WFT for a .40 cent gain. In addition, I started scaling in some puts on DIA and SPY.

8:30 pm MT: Market Wrap: Retail, Tech, and Financials were up and Energy and Commodities were down. FCX had a particularly nasty headfake, and could be headed lower. Solar Chips and Oil Shipping were the two worst performing industry groups today. Even though the Dow and SPX climbed today, they faded off the highs and threw Shooting Star type patterns. I started scaling in to puts on the DIA and the SPY as a result.

Here are some interesting Bullish Movers today: MA, V, GILD, JOYG, AET, INFY, SINA, VRSN, and ABT.

Here are some interesting potential Bearish Setups forming: DIA, SPY, KSS, GME, and FCX.

Energy and Commodity stocks look like they are headed for another couple of days of consolidation in the downswing. The big confirmed bounces in most stocks in those two sectors yesterday appear to be a failed signal today, we shall see tomorrow.....

The overall market may have another day or two in the current upswing, but I would be cautious of looking for the move to last much longer. Be selective with any call trades. There are some, however, like MA, V, GILD, and ABT that appear to have the legs for another couple of days of moving up. Remember that conditions are Neutral, so don't hang around too long in any of your trades.