This week both Dows and Nasdaq extended their strength into the record close of history because of the strong earning reports from several big names such as AA, AAPL, MSFT, TXN. The closing of DOWS and NASDAQ on friday with low volume let us think the profit taking action by hedge funds and small investors. The leader stocks we monitors don't show their strength as they did in the past 3 weeks, signing a time for consolidation is coming. This is further confirmed by our reading into market sentiment which has transfered into slightly bullish from bearish last week. VIX increases slightly , the risk associated with leader sector also increase after their strong move. Exchange Put/Call ratio has been reduced slightly below 1, also giving sign of market view change. The short squeeze also contributed to recent move.
Especially TXN almost play the role of hero in shinning the light into the semiconductor sector. Raising guidance of more than 9% gives investors big promise of future for tech sector for the remaining of this year. The price target has been upgraded to $38. But most likely it will be extended if their guidance is really delivered. AAPL reports impressive earning by their sales in macbook, leading almost $10 increase into its ER. We really appreciate their innovation of creating both wealth and efficiency to the customers.
However, we also witness that WFR, a recent strong wafer companies got hammered after ER. It is not that unusual happened for this stock. If we studied its past history, most of ER time, he won't have any good surprise. All of their performance have been executed before ER price movement. Larger than normal trading volume indicates a sell from institution. But this drop later on will give us chance to load a cheap quality company. The concern of competitors shows pressure into such price move but the analysis demonstrated that Solar PV sales remain healthy.
In sector view, energy sector, transportation sector , utility, and healthcare care remain strong but holds their gain into the end of this week. No distribution is monitored. The notes from FED" moderate economics and recovery of house market" assures the view that recession is not very likely, a catalyst that should be balanced the weak GDP growth data. Let's still eye on Earning next week.
5 comments:
The leader stocks we monitors don't show their strength as they did in the past 3 weeks, signing a time for consolidation is coming.
confirmed.
told you I am a market reader. :)) once my investment grow up more, I will play with market index.
before I came to us, i played hsi index along with a friend. the way you learned from your summer intern is pretty good, however, it's the best way only when you work for mm.
if the consolidation will dip to 12900, I will be very happy. holding 75% cash since last Friday.
look at ice today, killed both long/short. as I mentioned, it's profitable. however, hard to play with. their mm is not 纯良 at all. that's why I like oil stock in long run. oil stock mm is really 纯良. :))
hehe, that is good. quite interesting to see that market start at the lower tone right at the beginning of this week.
look at our old friend ise, like a rocket today with buyout news.
sorry for miss it after paying more attendtion on nmx and ice.
buyout target is the one i am working on. look at how easy it's to make 30 times in this way.
Yes, I am recently spending a lot of time on study the candidates of buying out. And also got some ideas. we need to go further on this topic definitely.
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