Is This the Best the Markets Can Do?

NEW YORK (TheStreet) -- The stock market's performance Thursday was not what the bulls wanted to see.

With the Apple (AAPL) earnings on Wednesday and the announcement of a stock split, coupled with the Facebook (FB) earnings, the bulls had everything going for them. And what did they do with all that momentum? They fell flat on their faces.

The DJIA was totally flat, 0, at the close, 16501.65. The S&P 500 closed at 1878.61, up 3.22 points. The Nasdaq closed up a disappointing 21.37 points at 4148.33 and the Russell 2000 closed  at 1144.35, down 2.73 points.

The big winner on Thursday was AAPL. With the announcement of a stock split and decent earnings after the close of trading on Wednesday, it closed at $567.77, up 43 points or 8.2%. The big disappointment in trading on Thursday was FB at $60.87, down 0.49 or 0.8% after posting what were very good earnings numbers after the close on Wednesday.

From a trading perspective, I need to put the FB disappointment in proper perspective. Traders need to understand that FB went into earnings Trend Bearish. That means for a three-month or longer time frame the price action in FB is bearish. In addition, FB was in overbought territory, according to my internal algorithm process.

I have frequently mentioned that traders need a risk management process that works. Traders and investors alike need to know where companies are in relation to their overbought and oversold levels. It matters and keeps many traders out of trouble.

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