Friday Outlook: Bulls in Charge?

You had to be pretty determined to find good news Thursday but bulls found it in Wal-mart (WMT), an upgrade in Intel (INTC) [after a downgrade the previous day] and lower than expected unemployment claims. Even crummy earnings and outlook from Bed Bath & Beyond (BBBY) rallied that stock slightly after it was crushed early. The rest of the news remains unrelentingly awful.

But, this is what trading range markets are all about and I still think bulls are playing from the big stack. If markets were objectively trading on the news we’d have collapsed a long time ago.

Volume improved markedly, especially in the NASDAQ, while breadth was the mirror image of Wednesday. The heavy upside volume in the NASDAQ compared to its breadth indicates a heavy concentration of buying in fewer names.
















































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Comments

[indigo-alien]

"If markets were objectively trading on the news we’d have collapsed a long time ago."

There is no bad news that cannot be ignored!

[rast1]

Yes but sometimes 2 x 2 = 5 -1 ;means whats logical happens sometimes just later

[j4thelonghaul]

So with the GE earnings miss along with AA and others to come it doesn't appear likely that the DJIA can possibly make a new high and confirm the new high in the DJTA. I am asking, without the help of GE how possibly can we believe that the market will make new highs in the next 6-12 months? I just don't see a reason to own a broad base of stocks. Am I missing something?

[David Fry]

j4thelonghaul: You're not missing a thing and your comments along with others are why we've been 90% in cash.

[Leonard]

Thank you, Mr. Fry. Have a good weekend.

[User 152065]

Ditto. Great read. Thanks.

Why such large cash. With all the shoes dropping, why not shorts like SKF especially (Gov't about done?)? SDS closely aligned with volatility next week. TWM, EEV or REW to hedge technology.
Or if you like Oil & Gas DUG with $99 - $110 crude.

[Voice of Reason]

Chart readers are like fortune tellers. They tell you want you want to hear and only point out "trends" AFTER they have happened.

In times like this go to a larger pet store and buy yourself a chimp. Take him home and train him to pick names out of a hat. Write down 100 names, 50 you want to buy, 50 you want to sell. Each morning have your chimp give you his advice by having him pick selection. Hell, you could do worse like listening to those moronic talking heads on CNBC or Bloomberg Financial.