It’s been great 4 weeks for the stock markets which saw 4 straight weekly gains. For Dow, this 4-week gain is the largest percentage gain since 1933. The gains were widespread. Nine out of 10 sectors in S&P gained, and the lone exception was health care which lost about 2%. Nasdaq is now over 2% positive for the year. There were some good news amidst several negative economic data that market ignored in anticipation that the bottoming process of economic downturn is imminent. There are still concerns abound, especially with the housing, commercial real estate, unemployment, and of course the banks and their balance sheet. Any bad news can pull the indices back down to earth easily.
Official earning season kicks off on Tuesday with Alcoa stepping in to earnings confession. Earnings estimate for major companies have dropped significantly. More than 70% of S&P companies are expected to post a decline in earnings compared to the past year. So, the earnings season is a major concern for markets.
Around 30 companies are expected to report earnings this week. I’ll be watching the following releases closely –
- Monday: APOG, BLUD
- Tuesday: AA, BBBY, MOS, RT
- Wednesday: STZ, FDO, GBX, SGR, WDFC, SMSC
- Thursday: CBK, MTRX
- Friday: Market is closed for Good Friday.
For details on earnings calendar, please visit: http://www.zacks.com/commentary/10514/Earnings+Preview+for+Apr+6+-+10
Economic Calendar: Following economic news might have impact on the markets –
For details, please refer to: http://online.barrons.com/public/page/barrons_econoday.html
- Monday: Fed Gov. Kevin Warsh speaks on Financial Markets.
- Tuesday: Red book, Consumer credit data.
- Wednesday: MBA purchase applications, Whole sale trade, EIA petroleum reserve data, FOMC minutes.
- Thursday: Chain store sales, International trade data, Initial weekly jobless claims, Import-export prices, EIA nat gas report. Larry Summers speaks at 12 pm. Money supply.
- Friday: Treasury surplus. Markets closed for Good Friday.
Picks for Monday, April 6: Markets have gone up too fast too soon. No major data releases are scheduled, hence markets will have a calm day to digest past moves. Weekend news events may influence a positive market open. Ben Bernanke indicated that the credit markets may be thawing …. this is a good sign. Also, the European banking giant, HSBC raised $17 billion in a largest ever rights offer in UK, which was well received.
As I complete this post, Asian markets are doing OK, and pretty much ignored North Korea’s Rocket launch and the following world condemnation.
I will keep the following stocks on my radar through out the week for possible inclusion in swing portfolio or for day trading opportunities:
KMB, COP, SGP, WAB, OMC, TTC, UL, HLF, TIE, WLL, MET, SII, HAIN, PTEN, AA, SD, HXL, OIS, EXM, ADM, PBR, SLAB, DRYS, MOS, MELI, FAS, BAC, MTH, IYT, ARO, FOSL, DZZ, and DIG.
If the stocks continue with their momentum to upside, I expect to see considerable downside potential for Gold (GLD, DGP) and Gold mining stocks (XME, GOLD, AUY). So, watch carefully if you have any gold or gold mining stocks.
I’ll be looking to add the following to TaurusTrader swing portfolio on Monday:
- CMED – Buy above 16.48, stop $14.20, target $18.60 (very volatile)
- RRC – Buy above $46.04, stop $43.20, target $50.50
- OMTR – Buy above $15.01, stop $13.90, target $17.10 (very volatile)
Per my previous post, I’ll not be day trading. hence, will not provide any day trade picks for Monday.
If there are questions or comments, please do post …..
Have a great week and happy trading.