Mattie, I was telling a colleague this evening that some traders will look back at what happened today and say, "Oh, my God. Time to get out...Blow off...This thing is coming down....." and others say, "Amore, Amore!"
You asked what to expect next and my answer is a simple and an obvious one for the NAZ. Watch for the earnings of three super tech companies, DELL+HWP+AMAT, next Tues.
Of the three, I am the least concerned about AMAT and HWP, in that order, as far beating estimates. DELL concerns me a bit because of high expectation with this stock.
If their earnings & outlook is +ve, then look for the NAZ to reach new highs by the end of next week.
The DOW is clearly trying to break out of its trading range and head higher, thanks to broad participation and strength in its financial, cyclical, technology, drugs, and consumer stocks. There are six trading days left before Feb 23rd. when Greenspan is scheduled to speak on the state of the U.S. economy in his Humphrey-Hawkins testimony. The DOW could reach as high as 9600 before then, pause a bit and zig-zag around that time, and then go into new highs by the end of the month.
"Amore, Amore!"
Clint
PS, Watch Banking & brokerage stocks closely. |
