There was a little profit taking in the last hour thursday but it was encouraging to see most of the major indexes finishing in the green. There are some technical resistances ahead for the major indexes. But as long as earnings stay decent, more upside is likely. For the S&P 500, watch for resistance in the 1872-1883 area; for the NASDAQ, watch for resistance between 4150 and 4160.
AAPL and FB are probably going to get lots of attention on their earnings reports next week. Both are scheduled on Wednesday. On Monday, we will hear from HAL, KMB, STI and NFLX on their performance during the latest quarter.
The technical condition of the major indexes improved after three consecutive sessions of gains. The S&P 500 recouped 1840, a support level from where the index broke down last week. The RSIs of both the NASDAQ and Russell 2000 show a positive divergence from price levels during the past two weeks, suggesting stocks may have reached an intermediate term low. With that said, both the NASDAQ and the Russell 2000 are still in their downtrend started in early March. Eearnings season is still young so look to earnings to set stocks' next move.
Both the NASDAQ and the Russell 2000 index held their 200 day moving average at the close today, keeping the longer term uptrend alive. Today's afternoon upside reversal is likely to lead to more short term gains. Although the earnings season is still very early at this stage, it doesn't look bad so far. High profile stocks, such as C, JNJ, KO, INTC and YHOO, all saw their stocks reacted positively to their reports. They will help keep the downside limited among the major indexes.
Notable earnings due out on Wednesday include: AXP, IBM, BAC, COF, PNC, USB, KSU, NE, STLD, GOOG and SNDK.
It was nice to see that last week's selling took a pause. However, it was a weak bounce. Small caps lagged, and there was little leadership. Investors were just sitting and waiting to see how earnings turn out. If you have large positions in a stock which is due to report, you probably need to think about how you would handle it should there be a downside surprise. Should you lighten up before the report? Once you get your strategy planned out, you will be able to react accordingly and avoid mistakes caused by overreaction. I often hear people talk about "would have", "could have", "should have" and etc. Those are like hope which is not an investment strategy.
Notable earnings due out on Today include: JNJ, KO, INTC, CSX, NTRS and YHOO.
The stock market is in a fragile technical condition as earnings season picks up steam this coming week. Although both the DJIA and the S&P 500 breached their respective 100 day moving averages Friday, the longer term up trend is still in place. The two major indexes also broke below their 100 day moving averages in early February but were able to bounce back in a couple of sessions. So the short term trend is down but the overall market is not broken. The RSI of the S&P 500 actually shows a positive divergence between this Monday's low and friday's low.
As market reaction to earnings can be very different among stocks; stay with those with positive reactions. Notable earnings due out on Monday include: C, AAL and JBHT.
Selling was broad based yesterday with only Consumer Staples Select Sector SPDR (XLP) able to hold a gain. The NASDAQ and Russell 2000 again led the major averages lower today and look headed for at least their lows from February of this year. There may be some intraday oversold rallies this week but until there is stabilization in the prices of the momentum stocks it's unlikely that the broader market will be able to move higher.
It was a weak, oversold bounce friday. Volume was light and there weren't much buying interest in the momentum stocks. Although the major indexes have held their respective support (1850 for the S&P 500, 4135 for the NASDAQ and 1146 for the Russell 2000) for now, poor bounces like what we had friday increase the odds of lower prices. Should the NASDAQ decisively break below 4135, we could see more selling in momentum names which would take the index down to the 3900 area.
This week first brings end of the quarter window dressing. Then economic data for March, which is expected to be less tainted by the weather, starts to come in. Expect volatility to stay relatively high in the near term. The 13.5 level continues to be the inflection point for VIX. A decisive break below 13.5 will bring in more buyers.
It wasn't a pretty reversal today. The divergence between the large cap indexes (DJIA and S&P 500) and the NASDAQ and small cap Russell 2000 indexes indicated a stock picker's market. The fairly-valued large cap stocks held up well while the overpriced internet and small cap names retreated. Technically, continue to watch the 1850 support area of the S&P 500. For the NASDAQ, watch for support near 4130, its 100- day moving average. Don't try to catch a falling knife. Let the air come out of the momentum names before making your moves.
Have a nice evening.
Good morning all. Intel is looking to start 10nm process in Oregon pretty soon, but there is NO friggin demand out there. Everyone is putting soooo much of emphasis on Tablets and smart phones but the profit margins are not so great except on certain smart phones. Well with the trade defecit and student loan being the next headache, watch out for the immediate headache which is the Margin money folks have borrowed to put into this market and now if they start getting margin calls there will be a disaster. Stay numb and liquid for now there will be good entry points down the road. This year 2014 the markets are destined to a return of 8 percent or so. Have a nice day.
The idiot deserves it, rodman just wanted some publicity just like any other celeb, look at the idiot Beiber.
The stock market was in need of a correction after the strong up move during the last few months. The selloff in these past two sessions could well likely lead to the correction we have been expecting. The problem with the emerging market issues is that there is no clear picture for investors in the U.S. The uncertainty is likely to weigh on our market until some major event takes place. Technically, stocks are oversold on an intraday basis, but not on a daily basis. There could be more downside. For the S&P 500, watch for support near 1775, its December low, followed by the 1765 area near its 100-day moving average. It's time to get a list of stocks which have had positive price reactions to earnings, and wait for entry opportunities.
He should have checked into the white house or run for a job that landed him at the white house or lastly he should have become room mate to wally weaver.
Despite today's drop, the major indexes aren't oversold yet. A lack of dip buying in today's slide suggested that there could be more downside. With that said, things could change quickly during an earnings season. The performance of individual stocks will probably be more important than how the overall market goes. Buy stocks which have positive price reactions to earnings on pullbacks. For the overall market, watch for support for the S&P 500 in the 1801-1813 area, followed by 1800.
says he may invest in intel from his fathers tipping pot. WOW! Elian says his step dad El Erian thinks markets will correct but his aunt Janet Reno says the markets will head higher and higher and higher until his other aunt Yellen takes a #$%$ in your soup pot again while adding some spice, caper and another 10bln taper.
The 5-year yield is up roughly 25 basis points since before the policy announcement.
Equities have been red-hot recently, which could be “disruptive” if they reverse with the same force.
Other central banks besides the Fed have also been partaking in highly accommodative monetary policies (ahem, European Central Bank and Bank of Japan). They will also have to contend with the tricky exit process.
Your browser does not support iframes. The rising 5-year yield could be one sign of difficulties ahead.
Pimco has projected that the Fed will hold its interest rates near zero until 2016, but some market indicators of rate hikes are pulling forward those expectations into the first half of 2015. The CME’s FedWatch shows the market pricing in a 54% chance of a rate hike in April 2015, based on fed funds futures contracts that are tied to policy rate expectations.
Perhaps that’s one sign that the exit could be tricky as the Fed tries to hold the market together. But it’s a long process, El-Erian says, and there are many battles left to be fought.