Stock Market Commentary

169% in a week!!!

Posted: May 23rd, 2013 at 1:47 pm

Who likes 169% profit in less than a week!? Check out this screenshot of one of the trades our head coach picked and traded last week.

Stock Report for May 22nd

Posted: May 22nd, 2013 at 11:09 pm

With one of the most volatile days the market has seen in quite a while it looks like tomorrow could be equally as interesting. Tomorrow’s reports include weekly jobless claims at 8:30 a.m. ET; U.S. manufacturing PMI at 8:58 a.m.; FHFA home prices at 9: a.m. and new home sales at 10 a.m. U.S. markets will also be watching PMI data for China and the euro zone. With the largest spread in share prices in a long time, the Dow Jones Industrial Average closed down by 80.41 points to 15307.17. In fact this was the first time since March 16, 2009, that the Dow closed down after trading up by over 150 points during intraday trading. The S&P 500 lost 13.81 points, or 0.8 percent, to finish at 1655.35. The Nasdaq dropped 38.82 points, or 1.11 percent, to close at 3463.30. Both the Dow and S&P were up as much as 1 percent earlier in the session.

It seems that uncertainty in quantitative easing is what drove the markets to such a volatile day, when Bernanke first came out say that the Fed purchasing would continue as jobless markets and the over market would not be changing its current policies anytime soon. Then selling took hold when Bernanke was questioned about the unwinding of quantitative easing. He said the Fed could start paring back purchases in a couple of months, and even though New York Fed President William Dudley had publicly said the same thing, markets went into a tail spin. It seems we currently have a conflicted Fed and it’s time to start looking at how this quantitative easing is truly helping the markets. As reported last night it seems strange that during home buildings biggest season that we would see 2 directors of Standard Pacific Corporation who both sold off nearly $220 million in shares during this time in the market. We will report further on this during tomorrow night’s trading room so be sure to tune into then.

After market close Hewlett-Packard released their quarter 2 results which outpaced expectations all though significantly below year over year results. On top of their guidance beat for the quarter, they also raised internal guidance for the third quarter which sent the stock trading up over 15% during aftermarket trading. Although the PC business has been suffering it seems that HP has controlled cost enough to make up for this downturn in the PC market and may still yet be able to evolve into the 21st century. We will keep a close eye on this tomorrow to see if the aftermarket trading was simply euphoria, or truly the beliefs of investors in this company. It seems like we could see a pullback in the markets as we had more potential shorts during our scans then we have seen in sometime. However the market has fooled us before during this recent bull run so being causes and looking for individual stocks that meet your criteria continues to be the rule of thumb.

Stock Report for May 21st

Posted: May 21st, 2013 at 11:37 pm

It seems like nothing can stop these markets from going higher with everyone and their dog still incredibly bullish. In fact Goldman Sachs is so confident that they once again raised their yearend target on the S&P 500 from 1625.00 to 1750.00, a jump of 5%. They went on further from there, expressing even more confidence in this bull market continuing raising their guidance on the S&P 500 for the following 2 years as well. Expecting the index to rise by 9 percent to 1900 in 2014, and advance by 10 percent to 2100 in 2015, compared to earlier forecasts of 1775 and 1900, respectively. The banking giant also stated that they expect dividend growth with 11 percent growth in both 2013 and 2014 and 9 percent in 2015.

During an interview with CNBC, Seth Masters of Bernstein Global Wealth Management also showed his strong beliefs in a growing equities markets still seeing the Dow Jones Industrial Average hit 20,000 before 2020, saying that it may take awhile but believes its still an accurate target. He even carried on saying that Goldman Sachs’ upgraded targets on the S&P 500 may still be understated. With institutional investors continuing to show their faith in this run, we may see an increase in retail investors jumping back in the market as their confidence likely should be improving. Right now we will continue to let our longs run further than normal and our shorts shorter than normal, paying close attention to volume and Twiggs Money Flow.

Once again Tuesday’s trading session saw all major U.S. Indexes trade higher, making it the 19th consecutive Tuesday of gains for the Dow Jones Industrial Average. The Dow Jones set another new all-time high closing up 52.30 points to 15387.52, while the S&P 500 also set a new all-time high closing at 1669.16. Currently the S&P 500 is on pace to have its biggest one month gain since 2011.

With little economic news to breakdown today; investors tuned into discussions from Fed Officials for early indications on their thoughts with the present quantitative easing program. It seems that currently the general consensus is to continue the influx of capital in to the markets, but to adjust based on the changes in incoming data on the economic front. Many feel however that equity markets are to driven by this Quantitative Easing, and it could come back to bite us, as this current rally has little to do with an improving underlying economy. With many different viewpoints on Fed policy investors and traders alike continued its buying pushing the markets even higher. This topic will likely be the focus of fundamentalists for the remainder of the month until a more solid direction from the Feds is understood.

While most economists show their beliefs in a bullish market but upgrading many of their future outlooks it seems that insiders may still not have quite the same outlook. Insider selling continues to drastically outpace insider buying with only 3 significant insider purchases taking place over the past couple of weeks compared with dozens of insider sales. The 3 purchases coming from a director of Acadia Pharmaceuticals, a director of Chesapeake Energy Corporation, and a director of Genomic Health Inc. The most notable sales came from 2 directors of Standard Pacific Corporation who both sold off nearly $220 million in shares on Monday May 20, 2013. Standard Pacific Corporation operates as a builder of single-family attached and detached homes in the United States. Coming into what is generally this industries biggest season, this could be a sign of the true health of the U.S. housing market. This is something we will be keeping a close eye on. Be sure to tune into Tuesday’s Trading to get a complete technical breakdown on a handful of stocks in many different sectors.

Stock Report for May 9th

Posted: May 9th, 2013 at 11:56 pm

For the first time in quite awhile the markets saw a slight pullback today, even with news on the economic front coming in better than expected. Initial US jobless claims fell by 4, 000 to a seasonally adjusted 323,000, the lowest level since January 2008. This was the third straight week in which claims came in below the 350,000 mark, a number often associated with a strengthening labour market by economists. The four-week moving average for new claims, a better gauge of job market trends, dropped 6,250 to 336,750—the lowest level since November 2007. With employers adding 165,000 new jobs to their payrolls in April, the unemployment rate dropped to a four-year low of 7.5%.
In the recent weeks, numbers like these would have sent the market into frenzy however this was not the case today. The Dow Jones Industrial Average closed above 15,000 for the third straight session, however slipping by 22.50 points to end the session at 15,082.62. The S&P 500 closed lower by 6.02 points near the bottom of its trading range, after hitting a fresh new intraday high of 1,635.01, while the NASDAQ traded down 4.10 points to 3,409.17, breaking a streak of 5 straight days of gains. Currently the S&P 500 is sitting almost 11% above its 200-day moving average, versus the average spread of 2.4%, reiterating our thoughts of an expected pullback to its Moving Averages.

This week was notable for IPO’s, as it could be the highest volume of companies debuting in the markets since late 2007. Quintiles Transnational Holdings the biggest provider of testing services to drug makers saw its first day of public trading today on the NYSE under the symbol Q. During Intraday trading shares of Quintiles jumped over 10% to as high as $44.33 before settling in at $42.11 by market close. This is the second time that Quintiles was an IPO going public in 1997, before becoming private again in 2003. Quintiles was the largest of seven IPOs to debut today which also included fast-growing mortgage lender PennyMac Financial Services, a startup founded by the former president of Countrywide Financial. Priced at 18.00, PennyMac closed 6% higher at 19.10 and was able to raise over $200 million in capital. Computer networking specialist Cyan and biotech company Receptos also debuted this week.

In other news today, The Wall Street Journal reported that giant looks like they will be the next to enter the smartphone market as they may be developing a high-end smartphone that features a 3-D display. It would be viewable without specialized glasses and use eye-tracking technology to make images float like 3-D holograms from almost any viewing angle. In April, Amazon announced that developers can now submit their apps for distribution in nearly 200 countries, including Australia, Brazil, Canada, Mexico, India, South Africa, South Korea, and even Papua New Guinea and Vatican City. Amazons shares have traded in a fairly close range so far this year starting the New Year off trading at the $258.00 level, trading as high as $283.99 and as low as $248.23.

The most exciting trade of the day came in the form of electric vehicles, as Tesla announced their first quarterly profit in the company’s 10 year history. Net Income came in at just over $11 million, which was nearly 3 times what Wall Street on average had expected. The income was created through the sale and delivery of 4,900 electric cars during the quarter, a few more than the 400 they had anticipated in delivering. Demand for the year has now been predicted to be more than 15,000 in the US and 30,000 worldwide. Tesla was also please to increase profit margins by reducing the number of hours it takes to build a Model S by nearly 40%. With these announcements shares skyrocketed by over 30% to a new intraday high of $75.77, before settling in at $69.40 at market close. This company will be interesting to watch to see if demand for these electric cars can continue to grow.

Acorn Wealth will now be offering an advanced trading workshop for those who are ready to go to the next level of training. Up until now this has never been offered and will allow those who are ready to get some of the secret trading methods from professional traders. If you are ready to continue your education and get some tips and tricks which are never publicly released now is the time. Please send an email to and indicate your interest. Happy Trading!!

Stock Report for April 30th

Posted: April 30th, 2013 at 11:27 pm

The month of April 2013 ended off much like the way it started, with all three major averages closing up during Tuesday’s trading session. For the fifth consecutive month and 16th consecutive Tuesday the Dow Jones Industrial Average closed up, ending today’s session at 14,839.80. Both the S&P 500 and Nasdaq logged their sixth-consecutive month of gains today with the S&P once again closing at an all -time high and the Nasdaq closing at its highest levels in 12.5 years. For the month, the Dow gained 1.79 percent, the S&P 500 increased 1.81 percent, and the Nasdaq added 1.88 percent.

While many significant economic health indicators have been showing signs of caution, the markets show no signs of slowing down. Many on Wall Street believe that we will continue to see quantitative easing through to the end of 2014, with anticipations of the Fed buying more than $350 billion in assets. This continued asset buying and infusion of cash into the market has certainly helped the stock market, but is still yet to be seen if it improves the health of the overall economy.

This morning Apple announced the biggest- ever non-bank issues at $17 billion, as the tech giant looks to improve investor sentiment around the company. The debt offering included fixed and floating-rate notes, ranging from 3 years to 30 years, with extremely low interest rates such as 0.45 percent for the three-year fixed and 3.85 percent on the 30-year. The bonds are being priced lower than previously expected but will yield more than its comparable Treasury bonds.

This follows the report the Alisher Usmanov, the richest man in Russia and Britain, bought $100 million worth of shares in Apple. The $17 billion size easily trumps the previous biggest single deal according to Thomson Reuters/IFR data, a $14.7 billion deal from Abbott Laboratories spin-off AbbVie last November. Following a 40% decline in its share value, Usmanov felt now was the time to get involved. These announcements helped shares rally a further 3% Tuesday, with its current 10-day rally now up over 12%. Shares ended the day at $442.78, up from a low of 385.10 on April 19, 2013.

The world’s second largest drug maker, Pfizer Inc, reported a 53% increase in net income during the first quarter of 2013, despite weaker than expected sales. The company also lowered their profit and sales forecast for the year, as drug patents expire and patients flood to less expensive generic competition. The biggest hit has been copycat versions of Pfizer’s cholesterol fighter Lipitor, which was the world’s best-selling drug for nearly a decade until it lost exclusivity in the U.S. in 2011 and in much of Europe last year. Revenue from Lipitor, which once brought in about $13 billion a year, dropped 55 percent to $626 million in the first quarter. Shares in Pfizer fell 4.5% to close just above $29.00 a share after setting a fresh new 52-week high on April 23rd, 2013.

Pfizer released two drugs which could see significant success, Xeljanz for rheumatoid arthritis and Eliquis for preventing strokes, and will begin planning ads for targeting consumers. While Pfizer may have some reduction in growth this year, it seems the long term health of this company still looks quite good. Tomorrow we will see 63 companies release their earnings before market open including Allergan Inc, Devon Energy Corporation, Merck & Co, and Time Warner Inc.

Tomorrow we will be scanning the market for potential shorting opportunities to be sure to have a read through of tomorrows Evening Newsletter.

Stock Report for April 24th

Posted: April 24th, 2013 at 7:52 pm

Wherever you look, examples of slowdowns in the economy consistently pop up, with the PMI numbers from Asia, Europe, and the U.S showing signs of weakness. The PMI, or the Purchasing Managers Indexes, are economic indicators derived from monthly surveys of private sector companies. The two principal producers of PMIs are Markit Group, which conducts PMIs for over 30 countries worldwide, and the Institute for Supply Management (ISM), which focuses only on the US.

The data for the index are collected through a survey of 400 purchasing managers in the manufacturing sector on five different fields, production level, new orders from customers, speed of supplier deliveries, inventories, and employment level. Those being surveyed are expected to report either better, worse, or same as standards as the previous month.Any reading over 50% indicates expansion.

The Chicago-PMI, which is a survey focusing on only the activity in the Chicago region, dropped 4.4% to 52.4%, significantly below expectations. Investors care about this indicator because the Chicago region somewhat mirrors the nation in its distribution of manufacturing and non-manufacturing activity.

Earnings numbers continue to come through with the likes of Procter & Gamble, Boeing, and AT&t all reporting before market open today, with Apple reporting yesterday after market close. While earnings have been good, they have not been spectacular with many companies having a difficult time increasing their top line. Although earnings per share numbers have been coming in quite strong, this can be affected by the significant stock buy backs many companies have been doing over the last couple of years.

Closing Wednesdays’s trading session the S&P500 managed to sqeek out a positive close ending at $1,578.79, while the Dow Jones Industrial Average traded down 43.16 points to $14,676.30, breaking a 3-day rally. The Nasdaq eked out a gain of 0.32 points, to end at 3,269.65. Interestingly enough yesterday marked the 15th consecutive Tuesday in which the Dow Jones closed in positive territory, the longest such run since 1927.

On April 18, 2013, the S&P 500 made a new low of $1,536.03 over its recent lows, showing signs of weakness, and have enjoyed a bounce from that support level. The next foreseeable resistance will come from either some sort of downward channel, which will find resistance near the $1,585 level, or a double top, which would find resistance at the $1,590-$1,596 levels. If this is to play out as a real bearish trend you would want to see both lower lows and lower highs. We will continue to assess the patterns however for a complete breakdown of the technical’s currently surrounding the S&P500, be sure to tune into Tuesday nights trading room.

Another area we will continue to watch is housing market, which has a lot riding on it when looking at the overall health of the markets. New home sales gained 1.5 percent in March to an adjusted annual rate of 417,000. While the numbers have been reasonably good considering the low level of activity surrounding the housing market, however we still have a long way to go to get back to the levels of 2006.

With the Feds and Central Banks around the world pumping money into the systems we expect to stay somewhat in this trading range for the foreseeable future. We will be sticking to our philosophy of selecting Individual stocks which have great promise either to the upside or the downside until we see a significant break in markets in one way or another.

Acorn Stock Report for April 18th

Posted: April 19th, 2013 at 1:07 am

For the first time in quite some time, the US markets closed down for consecutive days, led by techs and healthcare stocks. The S&P 500 declined 10.40 points, to finish at 1,541.61, finishing below its 50-day moving average for the first time this year, increasing our feelings that the market’s recent uptrend could be losing steam.

Interestingly enough had you placed your money in the S&P 500 in March of 2000 you would currently be sitting on a profit of zero. However had you traded the moves made in the market you could have seen potential profits of over 500%, increasing our desire to trade and not hang onto positions for the long term. The Dow Jones Industrial Average dropped 81.45 points to close at 14,537.14, dragged by United-Health and Bank of America.

Dell, which is currently a stock which we have on our short list may see a further downward move tomorrow, after Blackstone Investment Group pulled its buyout offer for the company. After weeks of due diligence, Blackstone backed out of its $25 billion offer following reservations expressed by Blackstone’s private equity fund on the merits of the deal. There were also concerns among Blackstone management about the ability to withdraw from a Dell investment profitably, they added. Dell shares last night closed at $13.95, valuing the group at $24.4 billion.

We noticed a break down in Dell’s technical’s last week, so this could be the catalyst we need to see this stock fall even further. By dropping out, Blackstone will increase the likelihood that Mr Dell and Silver Lake might prevail in their attempt to take the company private.

In other news SeaWorld Entertainment priced its initial public offering at $27 per share, raising $702 million, the company said Thursday. The offering, which consists of 26 million shares, was priced at the top end of the range and values the Florida-based company at $2.5 billion. Shares will begin trading on Friday under the ticker symbol “SEAS.”

Apple continued its decline closing below $400 per share for the first time since December 2011, allowing Exxon Mobil to recapture its title as the world most valuable company in terms of market cap.

Thanks to strong gains in its global wealth management and securities units, Morgan Stanley reported quarterly results better than expected. Morgan Stanley’s first-quarter 2013 adjusted earnings from continuing operations of 61 cents per share outpaced the Zacks Consensus Estimate by a nickel. However, this compared unfavorably with prior-year quarter earnings of 71 cents. With the company unable to beat earnings from the same quarter a year ago, shares took a nose dive falling nearly 5.5%.

This continues to be a very exciting time to be a trader in these markets, and if you have not been through Acorn’s updated trading workshop and want to learn more contact

Trading Room has been an unbelievable source of information so we hope you have been tuning in. Thursday nights trading room was another example of this as John Seville spent some time educating his listeners on how to use Twiggs Money Flow, which has actually predicted correctly the drops in the market. If you have not yet listened to this education as well as an update on the stocks on Acorn Wealth’s
watch list than make sure you do.

Stock Report for April 16th

Posted: April 16th, 2013 at 11:04 pm

Following the markets biggest decline of 2013, much uncertainty filled the market with the question
“what will happen next” on most people’s mind. Tuesday’s trading session started off in the right direction
for the bulls, after it was announced that new-home construction climbed to its highest levels in nearly 5 years,
for the month of March 2013. Housing starts hit its highest levels since June 2008, climbing 7 percent to a 1.04
million annual rate.

With record-low mortgage rates and pent-up demand for rental units we should see residential construction a
pillar of the expansion as concern grows that mandated cuts in planned federal spending will slow the world’s
largest economy. After construction data and corporate earnings topped estimates we saw the markets make up most of their losses from the previous session.

The Dow Jones Industrial Average rebounded by 157.58 points, or 1.08 percent, to close at 14,756.78, propelled
by Coca-Cola and Disney, after plunging more than 250 points in the previous session. All key S&P sectors closed in positive territory, boosted by materials and consumer staples. As an index the S&P 500 rallied 22.21 points, or 1.43%,to end at 1,574.5.

Following its biggest one-day drop since 1983, Gold rose to settle higher on Tuesday after physical buyers of
bullion grabbed the chance offered. Gold has fallen about 20 percent so far this year after an unbroken 12 years of
gains and is some 28 percent down from the record high hit in September 2011 at $1,920.30. Long term Gold Bull, Jim Rogers, had this to say earlier today.”Just be careful, they’re too many bulls, including me, but I’m very cautious,” Rogers told CNBC. “Gold is having a correction– it’s been correcting for 15-16 months now– which is normal in my view, and it’s possible that [the] correction is going to continue for a while longer.”

Still, the precious metal, which is up around 0.3 percent so far this year, is nowhere the near the $2,000 mark
many bulls had predicted it will hit by the end of this year. With the flood of cheap money unleashed by the
Federal Reserve’s quantitative easing it seems only right that this will drive gold prices higher. However this has
not yet been the case in 2013.

For a full breakdown on the key moves of gold since the early 1970′s,
checkout click here

Following market close we were privy to a number of positive moves in the market including Intel,
which posted earnings of 40 cents a share on revenue of $12.58 billion, falling slightly short of expectations for
41 cents a share on sales of $12.59 billion. Meanwhile, the company said it expects to see current-quarter revenue largely in line with current Wall Street estimates. Shares gained in extended-hours of trading, to climb over $22.00 per share.

Yahoo posted earnings of 38 cents a share, excluding one-time items, on revenue of $1.07 billion,
against forecasts for 24 cents a share on sales of $1.10 billion. Shares reversed their initial gains to turn lower
in choppy extended-hours trading.

Be sure to make sure you tune into Tuesday’s and Thursday’s trading room for a full technical breakdown on many potential trading opportunities as well as the third of a series of educational segments available to only those who listen to the Trading Room.

If you are interested in making money all summer there is no better way than to use technical’s
look for individual moves in the market.

Stock Report for April 10th

Posted: April 10th, 2013 at 10:25 pm

Three consecutive positive days is all it took to get the economy back into the black for the month of April 2013. Stocks soared across the board to push the Dow and S&P 500 to record new levels, while the Nasdaq surged to its highest levels in over 12-years. The Dow Jones Industrial Average rallied 128.78 points, or 0.88 percent, to finish at 14,802.24, leading the way was Merck and Pfizer. The S&P 500 popped 19.12 points, or 1.22 percent, to close at 1,587.73, breaking above its previous all-time high of 1,576.09 set in October 2007.

Earlier today, The Fed released the minutes of its latest meeting several hours early than scheduled after they accidentally released them Tuesday afternoon to about 100 Congressional staffers and trade lobbyists. At least 12 banks , one of the most powerful law firms on Wall Street, a $20 billion hedge fund, and a private equity fund also inadvertently received the minutes early. This list includes Citigroup, UBS, Goldman Sachs, Wells Fargo and a handful of other significant players on Wall Street.

The Fed has reached out to the Securities and Exchange and Commodity Futures Trading commissions and its inspector general to see if there was any trading tied to the early release of information. The Fed minutes are generally closely watched by the market for the insight they offer on Fed policy. Under its current quantitative easing program, the Fed purchases $85 billion in treasury’s and mortgage-back securities each month. The minutes released Wednesday showed that some Federal Reserve policy makers are growing worried about the risks associated with the central banks’ aggressive monetary stimulus, although most members still view the dangers as “manageable” now.

Following a very exciting Tuesday trading session, there were a number of after market earnings’ releases including Yum Brands, Bed, Bath, & Beyond, and Ruby Tuesday. Yum Brands the owner of KFC reported a 13% decline in same-store sales results, a much greater decline than anticipated. With more than 50% of Yum Brands sales taking place in China the recent bird flu outbreak has taken a significant toll on sales this month. Shares in this food giant were down nearly 2.5% to $65.15, in after-market trading.

Bed, Bath, & Beyond posted earnings of $1.68 a share which were in line with expectations, while revenue edged past expectations at $3.40 billion versus projections for $3.39 billion. Meanwhile, the company stated that it expects mid-single digit to low double-digit earnings growth for the full year.

Ruby Tuesday had a decent trading day Tuesday closing up almost 5.5% for the day, but has since given up much of those gains during after market trading. While earnings per-share did come in-line with expectations, revenue came in slightly below expectations at $307 million for the quarter. Shares in PC vendors including Microsoft, HP, Dell, and Intel all declined in after hours trading following a report from market researcher IDC. The firm noted the biggest decline in worldwide shipments of personal computers since 1994, after a decline of 13.9% for the quarter.

What is interesting to see about this market however is that if you pay attention to the sector rotation model below what it will tell you is that in a topping market Energy and Previous metals (or materials) should lose its lead to healthcare. I ran a sector comparison study over the last 6 months and it showed the following.

What you can see above is a comparison of the sectors and how they have moved over the last 6 months. I chose 6 months as that has been the length of the last big up leg in the market so we are analyzing how the sectors have changed since the beginning of the up-leg in the S&P.

In March Healthcare (XLV – Green) Significantly broke away which ,in terms of the sector rotation model, shows we are topping. Notably what has also happened in the last 10 days is that Utilities (XLU) has overtaken growth in Materials (XLB) and Energy(XLE). What this shows us is that we are potentially not only at the top of the market but about to roll over.

Tommorrow night Thursday April 11,2013, make sure you are tuned into Trading Room, as John Seville will continue his second in a series of educational topics, live and show you how to use this information above to find good stocks to trade. This is something only available to those who listen to the call so be sure to make an effort as this continuing education is meant to provide you with further tools to really get you trading well.

Stock Report for April 9th

Posted: April 10th, 2013 at 1:36 am

For the first time in nearly 14 sessions, the markets closed in the same direction for consecutive days, after 2 weeks of a back and fourth tug-of-war between bears and bulls. After hitting a fresh all-time high at 14,716.46, the Dow Jones Industrial Average finished out the session up 60 points to 14,673.46, led by top performers Microsoft and Intel. Without a three-day loosing streak this year, the Dow Jones is now the furthest into a year without such a run since 1976. The Dow ended 1976 up over 18%. The S&P 500 traded within 2 points of its all time highs, and settled in at 1,568.61

Earlier it was reported that U.S wholesale inventories suffered their biggest decline since September 2011, after the Commerce Department said that wholesale inventories fell 0.3% for the month of February. Economists polled by Reuters had expected stocks of unsold goods at U.S. wholesalers to rise 0.5 percent after a previously reported 1.2 percent increase in January. Economists expected a pickup in restocking by businesses to boost growth in the first quarter, but February’s unexpected decline could cause some to lower their GDP estimates. Growth estimates for the first three months of 2013 range as high as a 4.0 percent rate.

The value of petroleum stocks fell 1.7 percent in February after slipping 0.3 percent in January. Automotive inventories were flat after rising 0.2 percent the prior month. Sales at wholesalers rebounded 1.7 percent after falling 0.8 percent in January. Economists had expected sales to rise 1.3 percent. Although we are very cautious in these markets feeling we are do for a pullback we will not yet say it is time to short this market. Uncertainty in these markets keeps us looking for individual stocks as opposed to watch the entire market.

There were some interesting moves in the market today in individual stocks such as JCPenney. Shareholders seemed to be very unappeased with the idea of former CEO Myron Ullman returning to this position following Ron Johnson’s boot by the board. Adding to the company’s pain with sales being down more than 10% so far this year, Ullman will receive an annual base salary of $1 million. With these announcements shares in the clothing giant tumbled more than 12% to as low as $13.90, its lowest level in over a year. On the opposite side of the spectrum First Solar Inc shares sky rocketed over 33% after the company annouced its 2013 forecast on earnings and revenue significantly above Wall Streets estimates. The U.S. solar panel maker expects 2013 net sales of $3.8 billion to $4 billion and earnings per share of $4 to $4.50, excluding one-time items. First Solar said it would recognize about one third of the revenue from its 550 megawatt Desert Sunlight project in Riverside county, California, this year. That project is being built by First Solar but is owned by NextEra Energy, General Electric and Japan’s Sumitomo. As technology improves the cost per watt from First Solars, solar panels continues to drop each year and are expected to reach 40 cents by 2017.

Be sure to tune into Thursday nights Trading Room, as John Seville and Strath Curtis will be disecting this current trading season. Also as an added bonus you will be able to hear Part 2 of an ongoing education series hosted by John, teaching you how to build scans of the market. If you are not currently receiving the Trading Room, and want to be part of some of the best market commentary and stock market education in the business, please email, use the Trading Room Inquiry as the heading.