The Friday Stock Market: Addicted to Love With Shades of Gray

By Todd Harrison  APR 19, 2013 8:45 AM

The final fifth of our freaky week is upon us.

 


Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

Freaky Friday has arrived and there's no shortage of items on our radar.

Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), and IBM (NYSE:IBM) reported last night, with Big Blue sticking out as a sore thumb.

General Electric (NYSE:GE) released funky earnings this morning and Mr. Immelt says the company is "well-positioned for stronger performance."

And of course, April index options expire this morning, with individual stock options expiring on the close.

As discussed yesterday, expiration influences tend to manifest in the days prior to the actual expiry, and that has played through in spades. 


Monday, the S&P (INDEXSP:.INX) lost 36 points.  On Turnaround Tuesday, they bounced 22 points.  Wednesday, they lost -- yep -- 22 points, to close precisely at Monday's close.  Yesterday, they knocked ‘em another 10 handles -- but the bulls held the all-important S&P 1540 level -- and naturally, this morning the S&P futures are indicated up…10 handles.

Are we having fun yet?

I've been actively trading these last few weeks -- shorting to cover vs. buying to sell -- and I deviated from my hit-it-to-quit-it stylistic approach last night, carrying 50% short exposure into this morning. It stands to reason that the early morning futures are indicated higher as the trading gods have a vicious sense of humor.

Gap & Go or Pop & Drop? Too early to tell, but I will note the confluence of resistance between S&P 1560 and S&P 1610, with the former zone arriving through two lenses: a back-test of the uptrend in place since November and the short-term downtrend line, as evidenced in the charts below.





Lots to digest as I jump the fence to the Buzz & Banter -- this is where I, and others much smarter than I am, share our vibes in real-time; click here for a free trial.  But first, some Random Thoughts:
 

R.P.

Twitter: @todd_harrison

Position in SPY.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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