Sunday, July 17, 2011

Stock Market View for Week of 7/18/2011

It is going to be an interesting week. We will have a lot of trading opportunities related to news: from debt ceiling negotiations, to economic data, to earnings reports. Let's look at them in detail.

Debt ceiling: Mr. Obama and lawmakers duke it out in a nail-biter. I already said this is to weigh on equities in July, until resolved. Believe me folks, it gets resolved, but we get a heck of an opportunity to buy a crater-of-a-day or two before it does. Be ready...

Economic data: we are getting bad mfg data again. Empire State came in weak, so did industrial production. We will have mfg data from around the world to digest this coming week. If this weakness persists, markets will get worried about 2nd half again. We also will get housing data, it needs to show improving trend, as the last month's reports were positive. What a booster it will be, IF that trend develops...

Earnings reports: had it not been for debt ceiling, market would be higher by a lot. Earnings last week came in better than expected. AA, JPM, and GOOG showed that corporations are finding ways to grow both top and bottom lines. We will have a bunch of reports next week, with IBM and AAPL being the most important. They are at historic highs, and are the backbone of the market leading segment.

Conclusion: plenty of stuff next week to make us some money. But we need to weigh it all together when making the decision which way to go. Not going to be easy at all. Good luck!

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