Market Update 5-27-16

There is a reason people say the trend is your friend.  When the market is moving in a certain direction it has momentum and you have to respect that energy and let it tire itself out.  Don’t get in the way of a Mack truck as it’s barreling down the road.  Let it run out of gas and then you can watch it go back downhill. Today may be a big day because of the holiday and the Fed.  If someone opened an ETF on volume then I would be bullish on that because that’s the only thing I’m sure of right now.  

Market Correction

The large market move downward is in my opinion a scared reaction to China's market instability.  China and the US market have been going up steadily for years now and at some point the market was going to stall.  The current market valuations are pretty pricey and there isn't any real reason for many stocks to go any higher based on global market conditions and with China's market going through some issues.

In the days ahead I think the market is going to continue to be volatile moving down and up as people try to figure out what prices should be.  The market is more than likely not going to go any higher until there is favorable news about China or the Fed's decision about interest rates.  I personally think that the SPY (the benchmark for many investors) is going to stay between 185 and 205 until the next earnings come out.

Market Update #2 7-5-12

So here’s the setup…The ECB cut rates as expected and the ADP report was better than expected.  Also the jobless claims number was down and Central Bank of China has cut rates.  All the news is positive however the market can react in very strange ways even with positive news.  Since some investors were expecting QE3 (Quantitative Easing) because of the downward situation in Europe they may think that the Fed (Federal Reserve) will hold off on QE3 because of positive numbers in jobless claims and the other reports.

Bottom line…wait and see what the market does after the opening bell  

Stocks to watch:

SNE – Big release of Spider Man this week.  Target price 15.72 off of technical set up from the Daily chart

S (Sprint) – The technical setup looks good for Sprint.  I see a target price of $3.71 but if it breaks that level it could go higher

T – Dividend declaration at end of trading day

AAPL – British judge ruled against AAPL in its four patent infringement claims against HTC, they also are going to release a smaller ipad