Sunday, July 6, 2008
Weekly Watch List 7/7
Last week was a short week due to 4th of July and not a whole lot of earnings or events going on, but this week gets us ready for earning season. On Tuesday we got Alcoa (AA) reporting after the close and Friday we got GE reporting before the open. We also have the Univ. of Michigan Consumer Sentiment coming out on Friday. Too bad I will be gone to Arizona this Friday. It was a hard decision. I haven't taken a break in a while and like I said, earning season was starting soon and it's going to be even harder to get away. S&P is at this critical 126 level and I think we're just about to open the flood gate for another crazy summer. We have seen SPY breach this 126 support level, or the low from January and March. The first time it broke we bounced right back and when it broke again on Thursday you can see a more pronounce selling, even though it's to safe to assume a portion of traders are on early vacation. We're also seeing money flowing out of coal, metal, and some of the energy/gas stocks. The money has got to go somewhere though, could it flow into tech or some of the safer big cap stocks? We'll have to see what this summer brings us.