Investor鈥檚 first read 鈥?an edge before the openDJIA: 15,122.02S P 500: 1,626.13Nasdaq Comp.: 3,436.94Russell 2000: 981.45Wednesday, June 12, 2013 (9:04 a.m.)The bulls were there to catch stock after a sharp drop at the open yesterday, but the rebound ran into a wall at DJIA 15,250 (S P 500: 1,640). We are seeing increased 鈥渄istribution here, profit takers who are selling after a sharp rally. But we are still seeing investors quick to buy on a decline. The selling, which began on May 22 at DJIA 15,542 (S P 500: 1,687), gives the 鈥淪ell in May and Go Away鈥?bunch some credibility. Far more frequently than not, November 1 to May 1 outperforms the May 1 to November 1 period, ergo 鈥淪ell in May.鈥? The May peak followed a 25% rise in the DJIA (26% rise in the S P 500) since mid-November 2012 and a 15% rise in the DJIA since December 31 (14% for the S P). This consolidation in the market is normal. Recently, I warned investors not to be too sure the summer months will be bummers, since strong rallies occurred in the summers of 2010, 2011, 2012.TODAY: Looks like the bulls are buying aggressively at the open, the question now is, will sellers put a lid on the market as it challenges DJIA 15,300 (S P 500: 1,648), or will we see another leg up to challenge the May 22 (intraday) highs. Another leg up would pretty much ensure investors the May 鈥?June, 5.2% Phillies 34 Roy Halladay blue 2010 All Star Jerseys correction in the broad-based S P 500 is 鈥渉istory.鈥?The bulls should begin to run into sellers starting at DJIA 15,215 (S P 500: 1,636). Failure to penetrate that resistance would indicate a further drop in prices. This has become a tug of war between money managers who have no other option but to buy and profit-takers, who want to take some gains off the table. I believe this bull has much further to go, but not in a straight line. Nervous buyers, may opt to buy a partial position, rather than to go all-in. If the market corrects further, they have the option Red Sox 15 Dustin Pedroia 2010 All-Star red Jerseys to buy more. If it goes up, they are still making money, and could average their cost if they feel comfortable with the market. NOTE: I am considering adding stocks to this blog, but haven鈥檛 decided on a format. I picked up Facebook when it was $34 shortly after its $38 IPO because I thought it was enormously overpriced and wanted to target a bottom for its imminent decline, which I did at $18. Likewise, AAPL when it was in a tailspin at $540 late last year. I write this letter between 8:30 and 9:12 after reading morning news starting at 7 a.m. Overnight news can impact the market, as well as stocks, so I can鈥檛 work too far in advance. I like to get a look at pre-market trading in both the stock market and individual stocks per chance there is a change shortly before the open. This keeps commentary on stocks on a short leash !Apple (AAPL: $437.60)No change. AAPL bounced off support in the $433 - $434 area, which must hold ar it will drop to$423 - $426. Pattern is neutral, though it looks like supply is building between $449 and $454. Analysts and money managers need some raw meat to shew on here. We hear a lot about new products, but nothing capable of moving the stock up meaningfully. While it may hold above $433, it looks better around $420.FACEBOOK (FB - $24.03)FB gapped at the open Monday, moving across 24 before running out of steam. Volume was much improved, but yesterday was a correction day. Odds favor FB鈥檚 test of the $23 level is behind it, though it could drop to $23.66 briefly. Resistance now starts at $24.20

ECONOMY:We have a light schedule for economic reports this week. For access to information including charts and graphics go to www.mam.econoday.com . Great site !WEDNESDAY:Treasury Budget (2:00) 鈥?showed a $112.9 bil. surplus in Apr.THURSDAY:Jobless Claims (8:30) Proj. 350,000 for week Jun 8Retail Sales (8:30) Proj. +0.4% for week May 13Import/Export Prices (8:30) Proj: flatBusiness Inventories (10:00) Proj. +0.3%FRIDAYroducer Prices (8:30) Proj. +0.2%Current Account (8:30) Proj. minus $111.2 bil.Industrial Production (9:15) +0.2%Consumer Sentiment (9:15) Proj. 84.5RECENT POSTS: 2013May 28 DJIA 15,303 鈥淜ey Rally鈥滿ay 29 DJIA 15,409 鈥淏ulls, Not Bears, to Signal Start of Correction鈥滿ay 30 DJIA 15302 鈥淜ey Juncture for Market鈥檚 Near-Term Direction鈥滿ay 31 DJIA 15,324 鈥淏ulls Must Step In 鈥?Now !鈥滼une 3 DJIA 15,115 鈥淏ulls Must Regain Control to Avert Correction鈥滼une 4 DJIA 15,254 鈥淏ulls Need to Follow Through Today鈥滼une 5 DJIA 15,177 鈥淔ed Tapering Watch鈥滼une 6 DJIA 14,960 鈥淢arket to March to Fed 鈥淭aper鈥?News鈥滼une 7 DJIA 15,040 鈥淐areful ! Uncertainty About Fed Policy Continues鈥滼un 10 DJIA 15,248 鈥淔ed Tapering Angst Remains, But So Do Bulls鈥滼un 11 DJIA 15,239 鈥淯ncertainty Over Fed Tapering Looms鈥?Stock Trader鈥檚 AlmanacGeorge Brooks鈥淚nvestor鈥檚 first read 鈥?an edge before the open鈥?
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