Something that I like to watch for as we head into the thick of earnings season is the market’s reaction to quarterly earnings reports. Although one day does not make a trend, I went ahead & put together some stats on the market’s reaction to the most recent batch of earnings reports. I chose yesterday because the US equity markets were essentially flat, with the $SPX virtually flat at a close of -0.15%, the $NDX closing up +0.42%, S&P Mid-Cap index a flat +0.01%, S&P Small-Cap index -0.24% & the Dow Jones Total Stock Market Index closing at -0.11%. That’s about as flat an overall market close as you get. Therefore, all other things being equal, the reaction to individual companies that reported after the bell on Monday or before the open yesterday shouldn’t have been influenced by money flows in or out of the broad market tracking instruments (e.g. – S&P 500 index funds, QQQ, IWM, etc…), as is most often the case.
While our beloved Slope-meister rounds out his European vacation, I figured this might be a good time for those of us stuck at home to take our own quick trip around the world. I’d have to say that I have not seen such a unanimously bearish technical outlook for just about every major global stock market that I follow, US markets most certainly included, since at least early-mid 2011, if not late 2007. As (price) action speaks louder than words, without further ado I present you with a compilation of daily & weekly charts of the world’s largest equity markets. (more…)
First off, I just wanted to point out that the next few trading sessions are likely to be marked with increased volatility and above average chances for some fairly sizable opening gaps in either direction. The largest component of both the Nasdaq 100 & the S&P 500, AAPL (Apple), is scheduled to report earnings after the close today as well as another top component of both leading indices, MSFT (Microsoft). FB (Facebook) reports after the close tomorrow with AMZN (Amazon.com), another market leader, on deck for Thursday after the closing bell. (more…)
NFLX (Netflix Inc) remains well below the top of the massive bearish engulfing topping candlestick put in nearly a month ago with the stock limping along the uptrend line generated off the June 25th lows. I realize that most have lost the will to short this market nor do we have any solid sell signals or trend reversals in place in the broad market yet.
It looks like it just might be time to start dumping the trash… low quality stocks that is (or stocks of just about any quality for that matter). At a glance, the commonly followed overall breadth measures such as the $NYAD & $NAAD (NYSE & Nasdaq Advancing vs. Declining issues ratios) have indicated that the recent highs on many of the major US indices were broad based, accompanied by relatively healthy internals. (more…)
The chart on YUM (Yum! Brands Inc.) doesn’t look so yummy to me. In fact, it looks quite ugly. YUM recently pounded out a triple-top high with solid negative divergences in place on both the daily & weekly time frames. The breakdown of this bearish rising wedge pattern on the daily chart provides an objective, well-defined short entry at current levels (YUM actually just backtested the pattern today as well). (more…)