Sunday, July 15, 2012

Market Update 7-16-12

There is a lot of uncertainty in the markets for tomorrow’s session.  Earnings are still coming out and Bernanke’s going to speak this week.  The market had a strong rally on Friday so look for a pullback tomorrow but truth be told, the market could go in any direction this week.  I’m going to stay out for the first hour to let things develop.  When the market is reacting off news its best to stick to fundamentals, play the pullbacks on a percentage basis and time your entries off Bollinger Bands, moving averages and stochastics, but make sure you are out of your position before any news announcements.

I’m still looking at Walmart but I’m a bit cautious now that it’s pushing up to the analyst target of $79.  The value of the company may be priced in at this point in the current market conditions.  On the other hand Warren Buffet increased his position in Walmart so he may know more than everyone else. 

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