Market Commentary Archives

Earnings This Week

July 9, 2011 by Kunal Desai

It’s time to shake up the market and kick off what should be a very interesting earnings season. There is mixed optimism in the air, from what I can tell, but no one is betting the farm that it will be rosy. Did the Japanese disaster take a bight out of profits? Is the consumer …

Market Ready to Move?

June 28, 2011 by Kunal Desai

Does today’s seemingly strong action mean we’re out of the woods and ready to move more to the upside? Or, is this just end of month window dressing and the QE2 printing press? Some are predicting a massive fall next month without Ben holding the market’s head just above water. Others believe that the earnings numbers will show that the market is going to turn back up in the second 1/2 of the year on the backs of curbed inflation. After all, commodity/energy prices have been going down allowing for better profit margins for industry and more spending power to consumers.

I, for one, tend to think we head down next week, but news/earnings/data can change all of that, so I’m not betting on my hunch. Instead, I’ll trade what the market gives… and right now, it doesn’t give much. I did well intraday today, but swinging is still tough and the charts are not really hinting too much as to which direction we’re about to proceed.

6/26/2011 stock market review

June 26, 2011 by Kunal Desai

Evening folks. Got 2 videos for you guys reviewing the stock market indexes. We are going to be digging in to what happened last week and what we can expect this week. Overall the action in the market was very casino like. Big swings both up and down. It was definately obvious the programs were …

Sunday Market Thoughts

June 26, 2011 by Kunal Desai

It’s hard to feel good about the equities market headed into Monday after Ben’s confidence spanking late in the afternoon on Friday. Where are we going from here? No QE3…? Is it possible that we’ll actually have to value the market for what it is instead of being artificially propped up by the printing press? It looks that way and that makes investors nervous. I won’t begin to try and predict the direction from here, but uncertainty rules the short term direction and right now, if not right out troubled. That, on the surface, points to a lower push in the near term.

However, there is a lot of economic data out this week, especially pertaining to the consumer, that could show some hidden strength. On the other hand, if the consumer doesn’t look good (consumer spending is 70% of GDP), then I would expect the markets to push to new lows with high volatility baked in. We have not seen large panic selling to this point, but it feels like we’re on the edge and it’s as if though we’re just waiting for the right catalyst to show a major sell-off. For now, however, the options market shows there are still some traders betting long and until the VIX shoots back up above 23.5, we’re not really in an ‘unload the longs’ environment. Right now, we’re torn. The market is nervous, but the value trader is still picking up what they think are bargains.

SMH Under the Hood

June 23, 2011 by Kunal Desai

Lots of chatter this evening about the strength in the Semiconductor HOLDRs ETF.. SMH – let’s take a look. The ETF, itself, does look good. Nice bounce off horizontal support and it’s resuming its position above sma200. Under the hood, all of the indicators are oversold and have turned back up over the last few …

Silly Euro's

June 20, 2011 by Kunal Desai

Be warned. The market is set to rape everyone. Beware of the frenchman with the lazy eye………………………………………………………………………….. gap ups..gap downs..there is no ryme or reason and only the scalpers win in this market (me). In regards to the lack of action this weekend this is typical european behavior (remember they would all be eating kraut …

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