What will markets do this earnings season - trucharts.com blog weekend edition and update:
Well we had the big down move and then the earnings season started - VIX was elevated and the shorts or bears were thinking they had the upper hand - but maybe it was too early and too easy. Like they say when it is too good to be true then... The bears are probably licking their wounds - it is never good to be taking hefty positions in one direction or the other upon the dawn of earnings season, and last week, we think bears were caught off guard and this bubble growing bigger last week. Stocks like NFLX and GOOG/GOOGL killed the bears moral. We think many people were short these stocks into the earnings for these companies.
ADDED: We do not like the semi sector here - there is definitely a slowdown in this sector.
Gold is dropping like a rock - we predicted around 1000/oz and that is where we are headed - this is a bad sign seeing gold dropping - long term implications are not good - but this can be expected since markets are going up and the sentiment is in favor of the markets going up. The scenario is playing out like the 1999-2000 bubble - where stocks kept going up - real estate was going up (like now) and people stopped taking the refuge in gold and gold dropped to $200/oz and then rallied into 2008-2009 to 1900 per oz. We think we should wait on gold to bottom out and the markets topping action to complete its cycle. The bears have not thrown in the towel yet and the NASDAQ is now leading the markets - sounds like 1999-2000 - well a repeat is here.
How can we forget about Greece - well the government and the leaders caved in and we know that the finance minister resigned because Tsipras was going break his own word. Now Greece maybe saved and the Germans averted their egotistical Euro but we think this is not the end - with many other countries to follow.. Sell out Tsipras..
Fed will raise rates this year and quickly ramp this into the new year - rents and housing are moving fast and the Fed does not want this to get out of hand..
The internet stocks are trading at ridiculous valuations - again - check the market caps of all the major movers last week - FB, GOOG and NFLX. Biotech is still moving up and the breadth in the overall markets is very weak - that means that leadership is very narrow and only a small section of the overall market stocks are moving higher. There is very good evidence of a bubble scenario here - stocks up, real estate up and the Fed is still at 0% rate. You can clearly see this in the ETF and stock charts below: Do you see a pattern here?? SPY bounced nicely off the 50 week SMA.
Looks like the bubble is still intact.
Just check the charts for IBB,NFLX,NKE,UA,NEU and there are many others like these. YUP there is no bubble.
Next week over 450 companies will be reporting earnings - AAPL,MSFT,IBM,MMM and many others. We think the NASDAQ is taking the lead here from the internet and biotech stocks and the biotech bubble is still not ready to burst. These are great trading vehicles. We expect the DJIA to stay range bound and the SPY to track the NASDAQ - VIX dropped to below 12 and the stocks were coming off an oversold condition and the technicals like MACD, RSI and SMAs still are pointing to a move up.
We closed our INTC short and are short AMBA,AEM and long BIDU,CYBR,WBA and V,
WBA Chart: www.trucharts.com/stockview.aspx?TICK=WBA
How can we forget about Greece - well the government and the leaders caved in and we know that the finance minister resigned because Tsipras was going break his own word. Now Greece maybe saved and the Germans averted their egotistical Euro but we think this is not the end - with many other countries to follow.. Sell out Tsipras..
Fed will raise rates this year and quickly ramp this into the new year - rents and housing are moving fast and the Fed does not want this to get out of hand..
The internet stocks are trading at ridiculous valuations - again - check the market caps of all the major movers last week - FB, GOOG and NFLX. Biotech is still moving up and the breadth in the overall markets is very weak - that means that leadership is very narrow and only a small section of the overall market stocks are moving higher. There is very good evidence of a bubble scenario here - stocks up, real estate up and the Fed is still at 0% rate. You can clearly see this in the ETF and stock charts below: Do you see a pattern here?? SPY bounced nicely off the 50 week SMA.
Looks like the bubble is still intact.
Just check the charts for IBB,NFLX,NKE,UA,NEU and there are many others like these. YUP there is no bubble.
Next week over 450 companies will be reporting earnings - AAPL,MSFT,IBM,MMM and many others. We think the NASDAQ is taking the lead here from the internet and biotech stocks and the biotech bubble is still not ready to burst. These are great trading vehicles. We expect the DJIA to stay range bound and the SPY to track the NASDAQ - VIX dropped to below 12 and the stocks were coming off an oversold condition and the technicals like MACD, RSI and SMAs still are pointing to a move up.
We closed our INTC short and are short AMBA,AEM and long BIDU,CYBR,WBA and V,
WBA Chart: www.trucharts.com/stockview.aspx?TICK=WBA
We like BIDU here - coming off a bottom and oversold condition - earnings are on 7/23.
Check out our site and we have the best buy/sell signals on daily and weekly charts - no other site offers this feature and we will be now limiting access to paying subscribers very soon.
Good luck trading and focus on hedging your positions with options - we do that for all our positions.
Trucharts Team
Stock Charts Free - Trucharts.com - Technical Analysis, MACD, ETFs, Dividend stocks, Charting, Chart, Best Charting sites, Free Charts, Stock Signals Strategies:
Check out our site and we have the best buy/sell signals on daily and weekly charts - no other site offers this feature and we will be now limiting access to paying subscribers very soon.
Good luck trading and focus on hedging your positions with options - we do that for all our positions.
Trucharts Team
Stock Charts Free - Trucharts.com - Technical Analysis, MACD, ETFs, Dividend stocks, Charting, Chart, Best Charting sites, Free Charts, Stock Signals Strategies:
