Stock Market Analysis–07-19-2011
Just when it looked like the market was ready to fall through some support levels, we get a day like today. Maybe the US is about to default, but don’t tell the tech industry. After GOOG got back on track last week, a slew of other tech giants hit homeruns on their earnings calls, including IBM, AAPL, and VMW. While all interesting stocks to own right now, make sure you play them objectively since it’s easy to fall in love with companies you know and to hold on to them too long after the bubble bursts.
I have no doubt we’re forming another tech bubble, but don’t get too conservative too early. It could go on for another year or 2 or 5 and you’d be leaving too much money on the table trying to guess crash beforehand. Just manage your risk and stay strong with your stops.
Stock Market Analysis – 10-08-2008
Another wild day of ups and downs that ended in the red again. The fed tried as hard as it could by giving an out of cycle half point rate cut down to 1.5 percent, but the weakness in the market was too much to overcome. The new rate cut gave gold another boost, and expect further cuts to push it even higher. Some solar stocks bounced back strongly today too, like LDK, SOL, and CSIQ. Also in the news, IBM expects their third quarter earnings to come in above expectations.
As mentioned before, solar and tech are two of my favorite candidates for leading the rebound whenever it comes, so it may be worthwhile to keep an eye on the Nasdaq too. Divergences from the other indices can be an early sign that the tech heavy Nasdaq stocks are starting to ease up a little and may be getting too cheap to ignore. Longs should stay on the sidelines for now, but pay especially close attention to this round of earnings to gauge how the market reacts to the results. If we get to the point where companies miss or simply meet expectations but the stocks still go up, we’re probably getting close to at least a local bottom and if you have any aggressive bearish positions you should probably think about taking some profits.