Join        Login             Stock Quote

Back In The Saddle

 January 22, 2013 04:28 PM

The market broke out of its recent range last week to move to new 5-year highs.  Those types of headlines tend to make folks more bullish about stocks.  In the short-term, the market looks a bit overbought.  We are also getting into the meat of earnings season, which could lead to some pullback in the market.

In economic news, existing home sales for December hit 4.94 million units, but this was below estimates of 5.10 million units.

The big report we are waiting to see is Google (GOOG) which reports earnings after the market close today.

Stocks rising on earnings:  DD, VZ, KSU, PETS, FCX, TRV

Stocks falling on earnings:  JNJ, EAT, IIVI, WAT

Asian markets ended mixed after the Bank of Japan confirmed that it will pursue unlimited quantitative easing and a 2% inflation target to combat its two-decade plus bout with deflation.  China finished -0.6% lower.  China's Bank of Communication expects the country's 2013 GDP growth to reach 8.5%.

[Related -Google Inc (GOOG): Why Nest Labs Deal Is A Wakeup Call For Apple Inc.?]

European markets were generally lower this morning.  Eurogroup head Juncker said Cyprus may receive a bailout in March, following elections.

The dollar index is higher this morning but this isn't hurting commodities.  Oil prices are higher near $95.85 and gold prices are up to $1690.

The 10-year yield is firm at 1.85%.  And the VIX is bouncing after Friday's plunge to multi-year lows.  It is currently up 6.5% to 13.25.

Trading comment: The market has a solid week last week.  Earnings season is heating up, so we could easily see more consolidation in the market.  But for now the market appears to be in that stair-step mode we have seen before where it rises, then consolidates the gains in a mostly sideways fashion before moving higher again.  No doubt we will have a bigger correction at some point in Q1, but its possible it will be from higher levels in the stock market and also higher levels in the bullish sentiment indicators we follow.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageDefensive Sectors Lead Hesitant Market, But Traders Honor Long-standing Bullish Support

Last week, the major indexes fell back below round-number thresholds that had taken a lot of effort to read on...

article imageWill Janet Yellen's Outlook Prevail?

Federal Reserve Chairwoman Janet Yellen told the crowd last week that rate hikes are coming. The rise will read on...

article image3 Deep Value Stocks That Could Mount A Turnaround

Although the market action was a bit choppy in the first quarter of 2015, one fact is inescapable: the read on...

article imageFrenzied Speculative Activity In China's Equity Markets

It's time to take another look at the recent developments in China's equity markets as major indices hover read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.