Could the markets hangover from the almost non stop partying in 2013 appear so quickly? January 2nd 2014 was quite different this year compared to 1/2/13. The first day of 2013 the Nasdaq rocketed 93 handles higher, and the S&P 500 by 36. Today the Nasdaq finished lower by .8% and the S&P 500 by .9%, concluding just off the mid afternoon lows. Volume perked up as the bears came out kicking. Some social media bifurcation arose Thursday with LNKD TWTR taking center stage. LNKD lost 4% today and we profiled this name in our Friday 12/6 Game Plan as a short. LNKD has put into place a bearish head and shoulders pattern with a slight decline. Its neckline could form in conjunction with the very round 200 figure, so that will be an interesting test. TWTR on the other hand dismissed the Nasdaq’s opening day jitters and rose more than 5%. The round 60 handle here came into play as on a closing basis as it held 12/20. That day it lost 5%, the day prior 18%. TWTR has carved out a bearish rising wedge pattern. It should be shorted with a move under 63. Some oil names in the Bakken Shale arena were drilled today, pun intended, after a report came out saying how flammable the fuel coming from that formation could potentially be. Seems like some of the names affected today like OAS CLR, down big, were a little overextended. But it does give merit to the fact the weak groups always seem to be have the habit of catching bad news, and its not a coincidence. Almost analogous to the difference of the .200 and .300 hitters in the MLB. The .200 hitter complains and just misses the slider making excuses, while the .300 hitter fights it off for a bloop single.
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