Tuesday, April 20, 2010

State of the Market - 4/20/10

A nice day today on Wall Street overall, as stocks continued to bounce back from some selling on Friday and early Monday.  The day started slightly higher, but the opening gains were given up in the first hour.   The market did however right itself again and climbed higher into the lunch hour.   From there, however, it was just sideways action into the close.   Both the S&P and Nasdaq finished with decent percentage gains but those gains came on what looks like lower volume. 

Technically, both the major indices have taken back most of Friday's losses and could challenge the former highs soon.   However, everything remains very news-driven and that makes technicals take a backseat.   For instance, we have AAPL earnings tonight - that will likely drive trading tomorrow, at least for the Nasdaq. I have to ask myself how much more upside does AAPL have here in the short-term - could we see a gap up with a fade afterwards?   I think it's a possibility.  

I am still quite neutral on this market right now and remained in cash today.   There are some plays on the long side that I am watching (some of which were mentioned in this weekend's video) but for now I am waiting patiently.   I just don't have a good enough feel as to whether Friday was a one-day sell off and that's it or if it will lead to more selling.   It would be a lot easier if we weren't in the middle of earnings season.  

Not much else to say really - be careful right now but stay ready.   Good luck Wednesday.

1 comment:

CW, Portland OR said...

Huge AAPL earnings....