Archive for January, 2009
SPY 83 Should Hold Today - SPY 80 Will Be tested Next Week!
Yesterday, the market quickly erased any momentum that was gained from the four-day rally. A weaker than expected initial jobless claims number and a weak durable goods number contributed to the decline. The earnings releases Wednesday afternoon and Thursday morning were also negative. Once the market set its path Thursday morning, the selling pressure continued throughout the day. This morning, a better than expected GDP number raised early hopes. However, most analysts expect that the revisions will knock it down substantially in the coming months. A drop of 5% was expected for the fourth quarter and it shrank by 3.8%. Consumers …
Don’t Look For A Bullish Reversal Today - SPY 85 Needs To Hold!
During last week’s inauguration the market tanked. Earnings season was on our doorstep and the first round of news would come from the financial sector. Worst case scenarios were priced in and rightfully so. Massive bank write-downs continue and they have spread from the multinationals down to regional banks. The table was set last week for a retest of SPY 75, but that didn’t happen. Each following day, the market declined on the open and gradually worked its way back. That support followed through this week and the market was able to post four consecutive gains. Yesterday, the market rallied throughout …
This Rally Should Continue the Next Few Days and Stall Ahead of SPY 92!
The market continues to move higher now that financial stocks have reported. Wells Fargo/Wachovia took a $14 billion loss and the stock is trading higher. Earnings announcements from other sectors have been generally weak and nine out of ten sectors have missed their numbers. The market has been able to shrug off bad news because worst-case scenarios were priced in. A bid has returned and buyers are stepping in. The last week of January tends to be bullish. However, the SPY needs to rally back to 91 in the next two days or January will show a loss. Since 1950, as …
Watchlist: UNP, V, EOG, ABX
I caught the flu bug (yet again) and the last few days was busy with Chinese New Year and getting as much rest as I can. But I reckon I didn’t miss much action in the stock market as it was pretty much range bound the last few sessions. Today, we’ll have the FOMC policy statement and the market should have a clearer direction after this.
No charts today for this post, but here’s some stocks you can watch out for:
-Union Pacific Corporation (NYSE:UNP): Approaching horizontal resistance at $45-$46. This level also coincides with the 50% Fibonacci retracement from prior swing high to low.
-Visa Inc. (NYSE:V): Recorded a new low in recent session. Looking like a bear flag. A successful break & close below $42.5 would indicate another leg lower.
-EOG Resources, Inc. (NYSE:EOG): Higher lows and support at $60, making of a descending triangle. Watch for break of $60 for confirmation
-Barrick Gold Corporation (NYSE:ABX): If you’re still liking gold, wait for a pullback to about $32.5-$35 in this stock before considering dipping into the uptrend channel.
Edit: Here’s 2 complimentary videos from MarketClub:
-ABX Barrick Gold Analysis
-All Wound Up Over Gold
As you know, we’re in the midst of the earnings seasons, so please do check earnings date for swing stocks.
Good Stocks for Covered Call Writing
An anonymous reader says, “My question is what stocks should we use for the covered call strategy? (…)