Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Corporate Earnings Season, And They're Off...

Stock-Markets / Stock Markets 2010 Jul 13, 2010 - 01:42 AM GMT

By: Jack_Steiman

Stock-Markets

The earnings season is upon us and tonight we saw the first important group of stocks report. The two most important being Alcoa, Inc. (AA) and CSX Corp. (CSX), a leading railroad shipper of goods. CSX said things weren't bad at all. Not exactly knocking the ball out of the park but nothing bad. At the time of this writing I've watched CSX stock go up a dollar after hours, then reverse two dollars to go red by one, and then back to slightly up. In other words, the market doesn't know what to do with this report. As if the market wasn't difficult enough, we're now seeing traders clueless on what to do with this puppy. Ridiculous really.


The report showed CSX beating the street yet they said things going forward didn't look bad. Would have thought better but for now it's fairly flat. Remember, all that matters is how the market reacts to what it hears, not necessarily what we would think should take place. My gut says it moves higher on the news, but it will be an interesting watch.

Alcoa, Inc. (AA) said things improved, but they did so only because they had to lower their prices. The lower prices gave them demand but that doesn't mean that demand is going to be put to use immediately. Remember, they had to lower to get demand. If things were rocking then they would have had pricing power. They told us they did not and do not for now. So the first night sent a mixed message. Not really great stuff from Alcoa, but certainly better guidance from CSX.

We started the day with the market moving ever so slightly lower but nothing to really talk about. You could see that overbought was basically going to stay that way on the short-term charts. The market participants were simply waiting to see what would come from the earnings that came out tonight. The market flat lined throughout the day. All rallies were sold and all selling was bought, which gave us an overall flat close, although in the green. Fractional percentage gains.

The bulls can feel good about holding at overbought while the bears can say that the bulls still haven't taken out critical resistance. Truth is it all falls somewhere in between. Neither side is showing full control of things but you have to give the nod to the bulls as they were able to hold the bears at bay, while the markets tried to unwind from overbought on those short-term 60-minute charts.
First important support for the S&P 500 is at 1034 followed by long-term line in the sand at 1010. Resistance comes in at 1090 and 1093, which is the down trend line and then the 50-day exponential moving average. Anything in between is just noise in the pattern.

The real problem has been that even when we break out or down the move doesn't hold very long due to some excuse such as oversold on the daily charts. Very little to trust here. Just watch 1093 top side and 1034 down side and then ultimately 1010.
The earnings season is critically important. It will direct this market to move down or up significantly. Let's face it, markets move on earnings and sentiment. Sentiment is clearly on the side of the bulls but nothing is more important than real earnings. If they are good over the coming days and weeks then this market should make the move over 1093 with force.

With the like Intel Corporation (INTC), JPMorgan Chase & Co. (JPM), Citigroup, Inc. (C), Bank of America Corporation (BAC), and

General Electric Co. (GE) earnings out this week, it's not going to take long to get our answer about where this market wants to go. It's getting overbought again on those short-term charts, but after some further unwinding, we may be dealing with a move up and out if the earnings on these stocks rock them higher. Too early to say what will take place, but the big earners that cane make the next strong move are out there. Very interesting times. The next week should tell the tale.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Sign up for a Free 21-Day Trial to SwingTradeOnline.com!

© 2010 SwingTradeOnline.com

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in