Your Personal Trader - DJIM Journal 2011

As market grasped no positives emerged over the weekend to stave off ‘macro’ worries, SPX sunk ~20 pts off the open to 1295(important support) by noon hour. It was relatively quiet in Europe over the weekend as market waits on a mid- week European summit deal and any resolve to debt ceiling was not expected. Markets expectations were a little skewed.

Also hurting sentiment though was the seemingly non-event of Europe bank exams from Friday, which were noted to be better than feared in the hours that followed. After a weekend of individual scrutiny of results due to amount of public information attached, more faults and failures were found based on their own calculations.

Importantly, (earnings) a lot of noise today was that ‘macro’ factors were overshadowing ‘micro’ earnings. (cited here yesterday as a possibility). But, the problem runs a little deeper. It’s the actual earnings calls that continue to be messy, so it’s not just ‘macro’ headlines overhanging on earnings (MTG, HAS and a bunch of Euro stocks in am), which besides GOOG and a few others haven't met heightened broad market EPS expectations coming into Q3. AMC, luckily, WYNN /IBM met heightened expectations (Macau monthly # had been excellent) and did not sell off (sell the news ie. EDU $133H to $119L) immediately after running into earnings. Also, what we’re seeing is stocks moving into earning reports like WYNN, IBM, TZOO, AAPL,China Internets. As this occurs watch if upside is limited following excellent reports that meet elevated expectations to gauge if market can turn page to EPS.

We might've turned the 1st page from macro to micro after hours, but a summit deal is needed Wed-Thurs and China flash PMI's need to hold 50 level Wednesday night to turn more pages.