Stocks Slide: The Dollar Blasts Higher as the Euro Crumbles
| Recent Top 5 Positions | |||
| Ticker | Position | Sell Date | Return |
| ALJ | Long | 2/14 | +49.8% |
| ECTE | Long | 4/14 | +35.2% |
| JOEZ | Long | 4/11 | +42.2% |
| HILL | Long | 1/31 | +55.5% |
| AXK | Long | 5/31 | +30.2% |
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Investors must decide whether the market will break-out to fresh highs, or tank. The market consolidated last week, as expected, although I would have preferred a deeper pull back. The indices rallied hard into the first week of July, and rebounded a little too far and too fast. The market has a big week, and month, ahead of it. I would have expected the indices to pull-back more ahead of this week, but the time for consolidation is over.
Today kicks off earnings season with aluminum giant Alcoa (NYSE: AA) set to report this afternoon. Next week is a much bigger week for earnings, but economic data picks up after Alcoa reports tonight and those reports will provide enough of a distraction to keep the market occupied until earnings season really picks up. The market consolidated last week, as expected, although I would have preferred a deeper pull back. The indices rallied hard into the first week of July, and rebounded a little too far and too fast. The market has a big week, and month, ahead of it. I would have expected the indices to pull-back more ahead of this week, but the time for consolidation is over.
On Wednesday the Fed will release minutes from the last FOMC meeting. Then on Thursday the market will be given retail sales and producer inflation data. Lastly, on Friday CPI, empire manufacturing, industrial production and capacity data is set for release. The market consolidated last week, as expected, although I would have preferred a deeper pull back. The indices rallied hard into the first week of July, and rebounded a little too far and too fast. The market has a big week, and month, ahead of it. I would have expected the indices to pull-back more ahead of this week, but the time for consolidation is over.
The market will be overloaded with information during the next few weeks. And it's likely that information will provide the bulls with enough reason to make new highs, or give the bears the ability to take the market below 1250. The market consolidated last week, as expected, although I would have preferred a deeper pull back. The indices rallied hard into the first week of July, and rebounded a little too far and too fast. The market has a big week, and month, ahead of it. I would have expected the indices to pull-back more ahead of this week, but the time for consolidation is over.
Currently the TradeMaster portfolio is positioned long, and I intend to keep it that way. But if earnings reports begin to disappoint investors and economic data continues to be tepid I will recommend to cash-out and go short.
The bulls have recovered a large portion of an eight week decline that began in May. While the recovery from the lows looks promising, the market needs to use earnings season as a catalyst for fresh highs. The bulls have the momentum and taking new long positions is recommended. The weekend video "Stock Recap" 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.
The indices were mixed in Asia and down in Europe today. The market and industrial commodities should trade lower today after the dollar shot up overnight. More concerns developed over the weekend in Europe. And today the euro is in free-fall. The fall in the euro resulted in a rise to the dollar, and given the lack of other news (at this point) the market should decline this morning and bonds will rise as investors flee stocks.
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