The Other Catalyst
The S&P 500 got within a few points of resistance yesterday. And it looks as though we will see some profit taking today. Both oil and gold are lower in the pre-market.
Oil and gold are very sensitive to the U.S. dollar. These assets rallied on speculation that the Fed was going to enter a new phase of monetary easing that would push the U.S. dollar lower.
Of course, so far, the Fed hasn't begun to act on its promise to do more for the economy. It's expected that the Fed will announce something at its November 2-3 meeting. But what if it's not enough? What if they don't announce any new stimulus?
Those are the questions that investors are grappling with, and with good reason. Without knowing what the Fed's specific plans are, there's no way to know if the upside from another round of quantitative easing is priced in.
And let's not forget, too, that the FOMC is not united on the idea of quantitative easing. There are regional Fed presidents that aren't as gung-ho about more easing as Ben Bernanke.
There is another catalyst for stock prices that's taken a backseat while investors fixate on the Fed. Third quarter earnings are underway.
You may recall that my colleague at Wyatt Investment Research, Jason Cimpl, was expecting a good report from aluminum company Alcoa (NYSE:AA) on Friday. And sure enough, Alcoa jumped 6% after it reported.
Jason puts his analytical prowess to work recommending profitable trades and market analysis for his TradeMaster Daily Stock Alerts subscribers.
If you watch earnings, you know that stocks routinely make big moves after earnings. So, after his accurate Alcoa call, I asked Jason if he had any other stock he was watching during earnings season. I should have known Jason wasn't going to just list a couple ticker symbols...
Instead, Jason put together video chart analysis of something like 15 companies that should make profitable moves when they report this week. So if you want to get the early read on what GE (NYSE:GE), Google (Nasdaq:GOOG), CSX (NYSE:CSX) and Intel (Nasdaq:INTC), then this video is for you.
There's no strings attached, this video is Jason's gift to you. Watch it at your leisure, but remember, Intel reports this afternoon.
Of course, I'd like to hear your thoughts here: dailyprofit@wyattresearch.com
