Wednesday was one of those days where most of the gains came from the gap-up open. The market finished the day the same way it started, on a high note. Almost all of the gains after the initial gap came in the last 20 minutes of the trading day. This sets us up for another potential breakout higher. The pieces are in place as long as the prior high of SPY 127.80 holds, and a follow-through day Thursday may find traders piling on for another leg higher.
Thursday afternoon, earnings season kicks off with the report form Intel (INTC), and then JPMorgan (JPM) on Friday morning. My expectations are not that high for INTC given the recent fundamental shift during the CES in Vegas, but it will likely take some time before it impacts earning. Expectations are quite high after the run we’ve had, but companies have delivered nicely in the last few quarters.
Anecdotal economic evidence
Some interesting things I see from a tiny section of the economy. Our 401k allocation for our company of 40+ employees has seen a shift from 2010. Instead of 45% in cash or bonds, it had shifted to 35%. Its far from euphoric but definitely a shift in sentiment. And when I passed out the statements there were a few sighs of “too much money in money market. “ In addition, my friend who works in the electronics components sector continues to tell me booking is strong.