DJIM #29 2011
Monday, July 18, 2011 at 07:20AM An excruciatingly long and ugly trading week due to markets struggles with ‘macro’ issues on many fronts. Market was hoping for a few of the cracks to fill this weekend, but it seems the uncertainties will not dissolve heading into a plethora of earnings.
Unfortunately, these ‘macro’ headwinds will not likely allow ‘micro’ earnings to come to forefront just yet, no matter, if they are impressive. There were some reasons last week ( ie. Italy moving fast, Banks still for sale even after good start JPM, stress tests better than feared, M&A busy week…)…. that should have changed the sentiment for the better, but didn't. This is a concern as earnings may have same lame outcome. Hopefully, positive earnings can at least offset the overhangs short term until some resolutions appear. Naturally, EPS disappointments will only add another negative coat to the market. (noted many ‘bad’ reports last week)
Of course, situation is even more critical as the markets grapples to hold 20ma benchmark. The last hour ramp on Friday does nothing to relieve the pressure as it seemed ‘artificial’. All in, all we are doing is waiting for single stock action on company specific positive earnings to play.