Prepare for Earnings AAPL IBM INTC MSFT
The market pulled back last week and volume started to creep back up. It was an options expiration week which typically will be a higher volume week. Despite the 2% decline, all indices held their must hold support levels: SPX 1301, Nasdaq 2700 and Russell 800.
The bulls will need to protect those support levels through a barrage of data that is scheduled for this week. First, the U.S. debt ceiling talks will intensify as the deadline for default gets nearer. In fact, Treasury Secretary Tim Geithner was on CNBC talking the debt ceiling this morning. Additionally, U.S. earnings season hits full stride this week. Major blue chips like Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), GE (NYSE: GE), IBM (NYSE: IBM), Intel (Nasdaq: INTC) and McDonald's (NYSE: MCD) report second quarter earnings results this week. Along with the U.S. debt ceiling debate - and earnings results - will be the usual heap of economic data and the daily dose of European debt woes.
Lost in the mix of economic news is gold prices which hit $1600. Of course TradeMaster readers knew that move was coming. One month ago a special report on gold and silver miners was released. Since that release gold and silver prices have jumped, and the stocks in that report are up significantly as well. I still believe that there is upside to metal prices, and it's not too late to get your hands on that report, HERE.
Currently the TradeMaster portfolio is positioned long, and I intend to keep it that way. But, stops are tight, and should earnings reports begin to disappoint investors, and economic data continues to be mediocre, I will recommend to cash-out and go short. Thus far JPM and GOOG have reported fantastic numbers. The weekend video "Stock Review" goes over new stocks to watch for the week and I encourage all members to watch the video over the weekend to prepare for the new week.
Despite a nice recovery on Friday the U.S. indices opened lower. The indices likely dropped following a steep decline from the European indices after debt yields jumped again, Greek 2-year yields are over 34%. The euro is also tanking, which adds more pressure to the U.S. market since the dollar increases when the euro falls. The increase in the dollar adds pressure to commodities, like oil, which is down 2% this morning.
