TUESDAY 4/15/14; Tax Day; KO; JNJ; CPI; Chair Yellen Speaks; Whipsaw Market Action; INTC; YHOO; CSX

The dollar/yen is 101.78 remaining sideways over the last day. The strength on Wall Street does not carry though to Asia where markets are mixed. NIKK gains +0.6% but China’s SSEC drops -1.4% and HSI loses -1.6%. China retail sales, GDP and industrial production numbers are released this evening and will dramatically impact Asian and global markets. Chinese stocks are dragged lower by weak banking stocks. China’s money supply in March increases at the slowest pace since May 2001. The lower stimulus rate will decrease China’s growth. Rio Tinto iron ore shipments drop strongly but production remains firm.

[Text is Redacted: Purchase April 2014-04 to Read the Complete Chronology]

KO finishes up +3.7%. JNJ finishes up +2.1%. QIHU pops +4.4%. BCO collapses -11%. P +3.6%. Financials recover with the XLF up +1%. Semiconductors create strength in markets with SOX +1.6%. The IBB biotech index drops -6% intraday and then recovers the entire move to finish up +1%. Copper drops -1.6% recovering from the lows but remaining under the psychological 3 at 2.99. Traders continue to ignore Dr Copper. Gold plummets -2% recovering off the lows closing at 1300 on its 200-day MA. NEM -2.3%. Silver drops -2.4% under and remains under its important moving averages at 19.49.

After the bell, INTC, YHOO and CSX report and interestingly all three companies are expecting EPS of 37 cents. INTC beats by a penny on EPS and top line sales are in line a touch light. INTC pops +3%. YHOO beats by a penny on EPS and is a touch light on top line revenues just like INTC. YHOO bounces +1% higher. The results for both tech companies are not particularly impressive matching estimates but traders push both stocks strongly higher. Minutes later YHOO catapults +9% higher on robust Alibaba guidance. Alibaba continues to carry CEO Mayer although Yahoo numbers are slightly encouraging. YHOO shorts are running for their lives.

CSX beats by 3 pennies on EPS at 40 cents with a top line beat and pops +1% AH’s. The three key earnings releases are all positive so that will provide the bulls fuel for tomorrow’s session. Detroit reaches a deal with retired police and firefighters to preserve the current pensions.

The pro-Russian forces are creating instability in Moldova and Estonia in addition to East Ukraine. This is a Nazi tactic where the Russians create instability to provide a reason to invade these nations. The Whitehouse is very docile and does not want to become involved militarily in the growing unrest so Putin continues to help himself to additional pieces of pie. Traders ignore the geopolitical turmoil and happily buy stocks more concerned about the Fed and BOJ printing money to keep the stock market party going.