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Market Continues to Hold Near Highs

Scott Redler

Markets finished mixed Monday with the Nasdaq eking out a small gain while the Dow and S&P slumping to small losses. The S&P, which saw its 8-day win streak come to an end, sold off early in the session but recovered to finish back above the psychological 1500 level. Some rest and digestion at these levels would be healthy.

Despite the "quiet" market, there are still individual stocks moving around and providing opportunity.

LinkedIn (LNKD) was the star of the show today, breaking out to new all-time highs. The stock has been highlighted several times recently on our Off the Charts newsletter, and today it got that extension traders have been looking for after a period of choppy, but bullish, action. Earnings are February 7th for LinkedIn.

Most of the most notable moves today came to the downside in stocks that had seen big runs recently. The biggest drop came in the 3-D printing sector where a couple of bearish articles weighed on the industry's leading stocks. 3-D Systems (DDD) fell 13.86% and Stratasys (SSYS) dropped 9.92%. The rally in the 3-d printing stocks had reached near parablolic levels, and this is the type of action you can see when a rally reaches levels of exuberance.

Research in Motion (RIMM) has seen an increasing amount of attention as a potential takeover target after shares of the stock had been decimated over the last few years. The stock has enjoyed an impressive run over the past few months, but traders appeared to take some profits. RIMM finished down 7.75%.

Netflix (NFLX) rallied more than 70% following last week's blockbuster earnings report, but today saw a small pullback. The stock opened nearly 40% higher after the report, and continued to squeeze shorts after opening for trading. It's not surprising to see the stock pull back a bit, and today's 4.39% is just spilled milk.

Apple (AAPL) showed its first real signs of life since last week's poor earnings report, bouncing 2.26%. The bounce wasn't all that impressive, but at least halted the downside bleeding. Short-term traders can use today's high and low, as well as the start of last week's gap, as point of reference to trade against. The market continues to do a good job de-emphasizing AAPL.

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*DISCLOSURES: Scott Redler is long WFC, AAPL, LNKD, GE, BIDU, TBT, GE, MGM, ZNGA. Long LNKD 125 calls, short LNKD 135 calls. Short SPY.