Stocks are trading flat today following the monster rally yesterday. Based on the P.P.T Methodology, this is exactly what was expected. Let's explain. After any dramatic move in the market, up or down, the healthy way to handle it is to pause and rest. Think about a marathon runner. After running a marathon, the appropriate action is to rest before running another marathon. This is what the market is doing today. Based on a pause day, expect stocks to continue their up move into the end of the week. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $139.10, -0.04 (-0.03%).
Stocks in action today are many. First, Hewlett-Packard Company (NYSE:HPQ) is taking a beating after revealing that their acquisition of Autonomy was a bust. Even more, it appears there was rampant fraud at Autonomy which somehow HPQ missed when doing their due diligence. The stock will have problems in the short term getting buyers if it closes below $12.35. This was the technical low last Friday. As of now it seems unlikely it will close above that level.
Best Buy Co., Inc. (NYSE:BBY) is taking a beating as well after reporting earnings. The stock is trading at $12.07, -1.68 (-12.18%). This once high flying retailer is hitting new 52 week lows. The key level on BBY is $11.25 - $11.50.
Gareth Soloway
InTheMoneyStocks