Right now it truly looks as if the market's next move is indeed hanging on earnings. Stocks were modestly higher and rallied nicely to midmorning. Since that time, however, a steady slide into red. Some nice early gains given back to no gain or indeed a loss.
SP500 -2.96, -0.11%
NASDAQ -24.02, -0.34%
DJ30 -44.67, -0.18%
SP400 -0.05%
RUTX -0.31%
SOX -1.23%
There is a last hour rebound underway, but that is all subject to post-hours earnings, specifically GOOG.
Disappointing action for sure and if earnings fail to please the market will not perform well -- it is clearly waiting on them. The question then becomes how much long exposure to hold going into the close. If you are uncomfortable, taking half a position off is not a bad idea.
Oil prices (oil 68.87, +0.47), bonds (2.977% 10 year) are hot topics today, but trade is also ready to re-enter the headlines. Plenty to worry about, plenty to pin on earnings to save the day.
Some really good setups remain and indeed some areas are moving up, e.g. retail (M, RH). We may be picking up some M and would like to see HD make its move. Again, on the existing tech and tech related positions, the action today is disappointing and places a premium on GOOG's earnings. Nothing wrong with taking part of the position off to limit downside but leave some upside exposure.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment