Stocks needed a rest after wednesday's big run. So it wasn't surprising to see them taking a rest yesterday. However, the underperformance of the small and mid cap stocks continued to be a concern. In addition, there was little leadership in the market. The stock market needs another pullback like what we had in the first half of December to bring buyers in. Suggest take your profits or hedge and go to the sidelines. There does not seem to be one stock out there reasonably priced for an entry point. Way over valued and we will see a pullback most like after the new years.
yesterday was that Bernanke made a comment about keeping long term rate to zero hence protecting the folks who have borrowed on margin. So Uncle Ben has Wall streets back covered. Besides the inflation numbers of 2.5% and the unemployment target of 6.5 was thrown out and now the market expects the earliest if any rate increase will be end of 2015. But the biggest relief was to the margin borrowers. With tapering out of the way and the next fed meeting in March where Yellen will do more tapering the market is now moving forward on its own fundamentals of growth and earnings.
as per the technical indicators it seems unlikely we will see it again for a long long time. That was the high and it will be the high for a while. If I am right and its a big IF (since the market has thrown the technicals and fundamentals out the window) we will see a pullback from here as the internals are not very strong.
With the tapering issue out of the way, the stock market is allowed to run with the economy and earnings, both of which look to be on the path of moderate growth. This suggests that the longer term uptrend will probably stay in place for quite a while. In the near term, although the DJIA and the S&P 500 closed at record highs and the rest of the major indexes broke above of their short term downtrend started in late November, it is still unclear whether the major indexes can decisively break out above their November highs. The small and mid cap stocks again lagged yesterday, while the market internals weren't as strong as what the price moves by the DJIA and the S&P 500 would have suggested. Keep an eye on the internals and the technical indicators of the major indexes, which continue to show negative divergences, in the coming days. For a solid Santa Clause rally, the internals and the technicals would have to catch up.
Bernanke killed the shorts. But with stocks up 25 percent for the year 2013 already I don't see much upward move unless the earnings are a blowout by any corporations. The multiples are so high that the corporations have stopped buying their own stocks, what does that tell you folks.
with NO GROWTH in 2014 and uncertainty about its future business and future growth at 25 dollars Intel is fully priced. This market is fully priced for perfection at this point. But with the Feds tapering just 10Bln which is peanuts and no further commitments whether they will cut 10Bln every month or the next time they meet in March, this market can head any direction. Sawwy investors will stay away, fools will join in.
Although it was a pretty good rally yesterday, investors remained cautious ahead of the FOMC decision. VIX (16.03) rose even as stock prices were higher, and settled above 16 for the first time since mid October. Technically, it was just an oversold bounce yesterday, as the major indexes are still in the downtrend started on November 29. With that said, it all depends on what the Fed says on Wednesday. Should there be no tapering, we are most likely to get a final push higher toward the year end.
Today's bounce didn't change the short term downtrend. Technically, the major indexes are now in short term oversold territory, suggesting that we could see a little more bounce early next week. However, with the FOMC decision coming on Wednesday, expect traders to remain cautious and stocks to go sideways ahead of the decision. There is not much to do but to stay nimble or stay out.
never brother never, they have too much on their plate to digest. if apple wanted to do any of what you are saying they would have done that long time ago. they will not get into a business they donot understand.
with intel producing new processor chips for servers every 3 months. Intel will eat google up alive. If u believe what you read in bloomberg, you better believe in Santa and the Gay Dentist (Tooth fairy).
if only these friggin rumor spreading mongers understand what it takes to design a chip and then to manufacture it maybe they would take a dump over google's BS. Google only wants to knock down the price of the server chips and hence have started this rumor mill. Good buying opportunity if it goes down to 21 area.
It was a good thing that the small caps kept the overall market from totally falling apart yesterday, as the Russell 2000 index held 1100. However, the small cap index still looked vulnerable, as it failed to reclaim its 50 day moving average. Elsewhere, there was still no sign that this down leg is over. The new 52 week lows on the NYSE, which reached its highest level since late August on wednesday, expanded again. The chart of the DJIA appears to be forming a head-and- shoulder pattern after the blue chip index fell below its early December low (neckline) yesterday. The DJIA could fall to the 15400 area should the pattern play out.
Be cautious ya numbnuts....LOL
My experience has been that when GS MS C and as a matter of fact any analyst upgrades or downgrades a stock do the opposite and you will 100 percent be a winner. I love both GS and MS for that reason, I make money when they upgrade or downgrade.
There was no sign that this leg of the pullback has run its course, as market internals continued to deteriorate. The new 52-week lows expanded to the most since late August. The Russell 2000 broke below its 50-day moving average, and is now looking at the 1100 level for support. For the S&P 500, watch for support near 1775, followed by 1760, an area near its 50-day moving average. A 3% pullback from the broader market index's record closing high 1808 would take the index back to 1754. A 5% pullback would take it back to 1717. With still four sessions to go till the FOMC meeting, expect more profit taking in the near term.
A professor at the University of West Virginia was giving a lecture on the supernatural. To get a feel for his audience, he asks
"How many people here believe in ghosts?"
About 90 students raise their hands.
'Well, that's a good start. Out of those of you who believe in ghosts, do any of you think you've seen a ghost?"
About 40 students raise their hands.
"That's really good. I'm really glad you take this seriously. Has anyone here ever talked to a ghost?"
15 students raise their hands.
"Has anyone here ever touched a ghost?"
3 students raise their hands.
"That's fantastic. Now let me ask you one question further...Have any of you ever made love to a ghost?"
Billy Ray, way in the back raises his hand.
The professor takes off his glasses, and says, "Son, all the years I've been giving this lecture, no one has claimed to have made love to a ghost. You've got to come up here and tell us about your experience."
The #$%$ student replied with a nod and a grin, and began to make his way up to the podium. As he reached the front of the room, the professor says, "Well, so tell us what it's like to have sex with a ghost?"
Billy Ray replied, "Daaaang!!! From way back thar I thought you said "Goats"!!