Bulls Trying to Break Through to New Highs

Investor’s first read Daily edge before the open

DJIA: 17,958
S&P 500: 2,091
Nasdaq  Comp.: 4.974
Russell 2000:    1,259
Friday, April 10, 2015   8:46 a.m.

CONCLUSION:

   Q1 earnings reports will flow this month; for companies tied to energy and the U.S. dollar, they won’t read well.  So far, the Street is not alarmed, it remains focused on when the Fed will ease out of its zero-based, interest rate policy and raise rates.

    But quarterly report periods can be hazardous, even for companies that “beat” estimates, so beware.

   Today’s support is DJIA 17,921 (S&P 500: 2,086; Nasdaq Comp.: 4,961).

While not firing on all cylinders, the Bulls now have a shot at March highs of DJIA 18,338; S&P 500: 2,114; Nasdaq Comp.: 5,042; Russell 2000: 1,268.

     Bear in mind the DJIA, S&P 500, Nasdaq Comp.  are locked in a three month trading range  (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115; Nasdaq Comp.: 4,845 – 5,040). The smaller company index (Russell 2000) is more upbeat, suggesting the Street is seeking greater risk. 

     Selling can be expected to increase as the market enters a level that has stopped prices twice in March.   

KEY FACTORS: 

Private sector employment (new hires) reported Friday plunged to 129,000 in March from 210,000 in February (revised). 

-Economic  indicators reported last week were mixed.

-Q1 earnings for some companies will suffer from U.S. dollar’s strength and plunge in oil prices.
-Market still keyed on the Fed and it’s first bump up in interest rates, which with a slight softening in recent economic reports looks like it may happen later rather than sooner.

Concern that the U.S. economy is beginning to slump.

COMMENTS:

     The Street is so addicted to a Fed decision on interest rates, other analytic yardsticks appear to have little significance.  The Street reminds me of a pedestrian  trying to cross a  busy street. It looks first one way, then the other way, then back again, then….

     Bad news is welcome, since it suggests a delay in a rise in interest rates from zero to zero-plus-a-smidge.  Bad is good ?  What kind of silliness is that ?

Note: Source of economic data

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.

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George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

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Note: I discontinued my daily – before – open publishing of Investor’s first read on November 5, 2014, after 6 years (1.600 posts).  Future publishing will be on a less frequent basis and not always before the market opens. In the interim, I will publish as I see necessary as I craft a new format.

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Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

 

 

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