I was writing you a nice long response to this but then power went dead as all the air conditioners kicked on to fight this 103 day.
Being cash doesn't mean "I don't know". It simply means that the reward to risk ratio is not favorable. My stuff shows the indexes could climb but most issues are over bought and many will likely reverse down soon. Regardless, Tuesday will have INTC earnings which will steer the SOXX, AAPL earnings giving hints to PC demand and ASPs. All this at the same time CPI/PPI is being released. These all give the potential for a downturn if the news is bad from any one of them. Also, this has been a sell the news earnings season so far as evidenced by the ones I have watched (note - AA, BGEN, GE, YHOO etc). Now if the news is good, this is options expiration week and the Max Pain point is well below our current market. This should limit the upside reaction to any news and provide for a justification for any bad news. Why would anyone risk starting a new long position here. If the news is good, then there should be time to get in before next week once option expiration is over.
Of course this is all JMHO, BWDIK, <G>, <ng>, FWIW etc.
Good Luck,
Lee |
