The market looked headed for healthy losses Thursday before rallying back to near the flat line, once again showing incredible resilience. The S&P finished the day down 0.2%. Stocks have been choppy at highs this week, which is often a red flag that a rally is nearing its latter stages. Today looked like the day things may start to unravel, but the firm bid in this market came to the rescue.
Traders have been watching the banks as a leading indicator for this market, and they showed signs of breaking down hard this morning. Goldman Sachs (GS) put in a classic push-through failure and looked like it might combine it with a bearish engulfing bar, but was able to rally with the market in the afternoon to finish with a doji candlestick.
Apple (AAPL) remained lethargic until just before the close of the session, when news hit the wires that noted hedge fund investor David Einhorn sued Apple over its proposal to use "blank check" to hold onto its mountain of cash. Einhorn, a large AAPL shareholder, wants to see the company return some of that cash to shareholders. Keep an eye on AAPL for potential follow-through tomorrow.
LinkedIn (LNKD) reported earnings after the close and topped estimates once again. Since the company went public, it has consistently topped estimates, showing that it is the "grown-up" within the social media sector. Scott Redler has been trading the stock at various points over the past few weeks, and owned a call spread heading into the report. LNKD is currently up around 10% after hours.
With all of these confusing gyrations in the market, right now it seems best to sit on your hands and wait for more clarity.
*DISCLOSURES: Scott Redler is long LNKD call spread, AAPL, ZNGA, BAC, GE, RFMD, TBT. Short SPY.