Morning folks. futures gapping down slightly on global issues over the weekend.. china raising rates (big inflation in the works there), european debt issues,etc . Earnings will be front and center this week with over 100 of the s&p reporting this week. Reactions to earnings last week were muted to not so good. Usuaully during this season I see quite a few earnings breakouts and big momo plays developing post earnings of companies. Last week I saw a couple and neither one looked worth playing. Its looking like stockis are getting faded on guidance the earnings themselves are fine but the street is fading guidance. That will be soemthing to keep an eye on this week if that continues it could be a bloody earnings season with limited upside. The s&p is looking at .5% lower opening. Oil (uso) down 1.42%, GOLD (gld) .5% , silver (slv) .38%.
not a bad bounce in the market on friday. the market held right at support. when spx started tapping 1300 buyers stepped in. Felt very mechanical the way it happened. right now the market seems very nuetral in my book for every positive i see there is a negative. Right now we are in balance. It seems paying attention to anything excpt price action the last so many months has become a huge detriment to trading so right now its best to look at scenarios.
Best case scenario we have great earnings reports and s&p takes out highs blows past 1350
Nuetral case: We fuddle around from spx 1300 to 1350. Slap chopping traders around all week while we digest whats going on (most likely in my book)
Worst Case: We break below spx 1300 have to raise cash and wait tilll spx 1250 for bounce
here are some stocks im watching. be careful of getting chopped around this week. Often what i do during this time is give my stops a longer leash. First instinct is to tighten stops which will just lead to more stop outs. I like to lenghten mine and go smaller position so my dollar risk is the same but i give myself a chance to hit the trades
i havent checked for earnings so dont get sandbagged on any of these trades..im forgetful so it happens to me a couple times a quarter! and it never works out for me!