Jul 13th, 2009
Futures are flat this morning, as investor await the start of Earnings Season! It won’t be pretty, as I’m sure you’re aware. Investors are going to be looking for something better than “Better than expected but still bad.” They’re going to be looking for surprisingly good numbers, in order to get above the critical support levels lost last week.
Those levels are:
Short On Strength
If earnings are so-so, then expect these levels to be strengthened into rock solid resistance, and excellent levels from which to short on any strength. In other words, as price approaches these levels, take short positions with stops just above these fronts.
Today we have CSX (CSX) and Novelus (NVLS), on Tuesday things start picking up with Intel (INTC), Johnson & Johnson (JNJ) and Goldman Sach (GS). That should get things rocking!
Thursday is going to be REALLY BIG with Google (GOOG), IBM and JP Morgan Chase (JPM). Then Friday we continue with the Bank onslaught of Citi Group (C) and Bank of America (BA). Oh, and how could I forget the stock that’s practically a mutual fund, General Electric (GE)? Should be lot’s of fun!
So, investors on Wall Street know what’s ahead. They know things aren’t good. We have the looming Head and Shoulder pattern that will surely cap this rally, we have a slew of important earnings reports which will undoubtedly cause havoc, and we have Jobs that are still being lost at a rate that is simply deafening.
The sentiment my friends is in the toilet. We’ll probably get a good round of selling, followed by extreme oversold conditions, which will naturally cause an oversold bounce, that we can take to the bank with more shorts.
Good hunting my fellow investors.