Wednesday, April 14, 2010

State of the Market - 4/14/10

So far, so good as far as earnings are concerned, as the stock market rose once again today on strong earnings from INTC and JPM.   Volume was strong and it doesn't look like the bulls are going to stop moving this market higher anytime soon.   Maybe they won't ever stop.  

Technically, again, I don't really think they matter as much in the middle of the big reports we are going to see over the next two or three weeks.  If the reports come out positive, the market will likely keep moving higher.   You just have to watch for any potential warning signs right now.   If reports looks positive on the surface but are sold off, then you start worrying a bit.   Today, however, we saw none of that.   Based on today, it looks like the market is more than willing to accept optimistic earnings reports. 

I made a few trades today based on the strength shown by the market.   I entered CYD at $19.09 today on the breakout from what looks like a handle on its cup pattern.  This was a chart highlighted in the weekend video.  It had a little breakdown midday but closed well so I am hopeful this can see more upside.   I also started an IRA position in crude oil via UCO at $13.90 - I like the daily chart on crude right now as it looks like it has further upside.   I also started a position in gold via UGL at $49.29, although that didn't close strong.  

A few of the trades I was stopped out of yesterday were up big today (BZH - 11%) and that is always frustrating.   Hopefully you weren't stopped out and caught some of that nice gain.   There were many other movers today so opportunities remain out there.   I am still holding NEP as I have a little cushion going into earning tomorrow.   I normally don't hold but I am taking the chance for tomorrow morning.  Given my recent luck, that may not be a good decision but we will see.

Not much else to say - the market just keeps moving higher and if earnings remain positive, then it will likely continue to just move higher, at least based on today's reaction.   I'm sure we'll have a few reports here and there that will throw a temporary wrench into things, but until dips aren't bought and clear breakdowns occur, staying long is the only thing to do.   Good luck Thursday.

1 comment:

Doctor Stock said...

It's interesting to see the momentum carry on... I've been cautious, and still am, about the market's ability to deliver gains. Nevertheless, why fight momentum... as long as investors keep their stop losses in place and be prepared to exit their "dearly loved" stocks if needed.