One question arises after the past 2 trading days…How long can this last?. Simply, the market is ploughing higher oblivious to negatives and lack of leadership. Take Friday, a move higher off led by Semi equipment (laggards ) overshadowing an RRR hike in China and more hawkish European noise. Today, AAPL medical leave negative for tech, C' earnings negative for financials, hot UK inflation are seemingly ignored. Add, no revamp particulars yet on bailout from the Eurofin meetings and market doesn’t get disappointed either. Euro was strong early, so guess the market saw progress in talks. (see yesterday note).
Are stronger (Ahead of) than expected earnings Q4 prints going to be enough to hold up the market?.
Shadowlist
- Momentum/earnings/“winners of ‘10 – Excellent prints from IBM (for software) and AAPL. There’s no doubt Jobs medical leave will outweigh anything ‘excellent’ AAPL throws out in the short term, so it will be better to watch the ramifications of IBM’s earnings on others and how it trades tomorrow. Recently Nov end Q’s in ORCL RHT tipped IBM’s hand, so some of this beat might be in the market. Today’s action, despite the AAPL brick on the indicies, tech held up well. Unfortunately, this excludes the action in FFIV, RVBD, CRM types. The 9ema is providing support for now. While the mega caps excelled, the component stocks like CREE LLTC had disappointing inventory correction themes.
- Commodities- Same trend continues as Ag’s -Ferts remain the best sub group. Strength in solars (TSL FSLR on Shadowlist), but not sure of catalyst or it’s ability to last.
- Financials- A ton of names to report on Wed. (inc GS WFC) to potentially (hope) negate C’s print.
Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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