Good news aren't that good anymore

Here we are kicking the first day of May with mixed market.

Market seems indecisive today, whether it will agree with yesterday conclusion to continue a HEALTHY, NECESSARY pullback to 12.990 area or to form a rising stairs to another record breaking high.

The Dow is up around 11 points now, while the Nasdaq down 6 points and the S&P down 0.71 points.

March pending home sales has reported a 4.9% decline in home sales also credit some of the concerns that investor have.

More and more good news are not that good anymore. For example Procter and Gamble posted an increase in profit but they lowered outlook for the next fiscal year, with $0.74 EPS vs estimates $0.74. Shares of PG are down around 2.3% right now.
VMC also has been trading lower as much as 5% after the bell right now. This conforms their tanking yesterday during after hours.

"Big Uncle" Tom Bernanke gave a speech on free trade earlier today. He maintained his vision that US is not interested in protectionist policies. However there were no other comments about the economic outlook, or Fed policy. Therefore market had little regard of his speech.

Looks like the old wall street saying "go away in May" is reflected in this mid day of first May.

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AAPL earning exploded.

As predicted by several traders. Apple (AAPL) earnings topped analyst expectations by 23 cents per share.
AAPL second-quarter profit grew 88 percent to 87 cents per share, and revenue increased 21 percent to $5.26 billion, most of this increase were contributed by wonderful sales of iPod media players and macintosh.

Analysts polled by Thomson Financial expected 64 cents per share in profit and $5.17 billion in sales.

Analyst from Bear Stearns said "We see the Apple story shifting from a dependence on one 'hit' product with little sense of what could follow and when, to a broader array of products with multiple drivers and a sense of what is down the road".

AAPL shares look set to follow the Dow to set foot into all-time high, in after hours AAPL rose to around $104, from yesterday closing price 95.35.

However AAPL started to going down slowly in the trading hours. From its day high at 102.50 to 100.00.

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Stepping over 13.000 Nicely !

Stocks opened higher as investors were fueled with some better than expected earnings reports and encouraging economic data.

Boeing opened nearing its 52 week high after exceeding expectations led the Dow today. March durable goods also posted rising 3.4%, which is stronger than expected.

Anazon - AMZN did wonderful today. Its Q1 Profit were doubled and management raised its full year out look. Right on, several analyst upgraded Amazon and the stock really flew today ! Near closing bell AMZN traded as high as 56.32. That's a 25% increase from today opening !
AMZN helped nasdaq to lock higher.

Alcoa Inc. (AA) also posted great earning which helped the Dow to break its tight trading range during mid-day.

The Dow is at all time high and S&P at its 6 1/2 years high both indices continously to post gains. Stocks are also continously posting new high. Bad stocks suddenly turned good, good stocks went to its 52 week whatever high. Even with such conditions, I still call for a sharp pulback soon.

Perhaps the S&P will be pulled to reach its all time high before pullback, or we might see it sooner.

Technorati Tags: earnings release,stocks market,fundamental analysis

Is the Stock Market sinking or flying ?

This week is the last week of April. We'll see whether the Old wall street saying "Buy in April and Go Away in May" will apply to this final week. We already see the "buy in April" part but a significant pullback is yet to happen.

A possible scenario for the Dow is to pullback slightly to around 12.700 and rebound back to test the 13.000 area. But will a pullback ever happen ?

It all depends on the set of heavy weight economic data released this week.

Today we have Consumer Confidence and Existing Home Sales data due. If the existing home sales is bad then coupled with bad new home sales data tomorrow then it will add further pressure toward the slumping housing sector.

Other datas due out this week include: GDP, Employment cost index, Fed's Beige Book and others. If market wants to pullback here, it will find excuse and reasons from those datas.

Other than those datas, several companies will release their earnings report this week. AAPL, MSFT and CVX are the highlight this week. Failure to "impress" the investors coupled with not so great data can be a reason to profit taking in the market.

We are seeing also a negative divergence of price vs RSI and TSV in the Dow weekly chart.



12.890 seems to be a strong support there, so yesterday move was not really significant. Let's see what today brings.


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Another solid ground for Dow

The indices managed to hold their ground despite the sell off that happened in Asia earlier today.
With the Asia sell off, Europe and USA still held strong and ended today in flat area.

The Nasdaq ended up being lower by just a mere 5.15 points, while the S&P ended lower by 1.77 points.
The alter effect of YHOO still linger and dragged the Nasdaq lower.

What the market today was more a indecisiveness than a consolidation move. Let's see whether the market breaks the yesterday high and close it there or ended up in a correction.

The more the market rise without a pullback, the harder the pullback will be. We have been rising without significant pullback, and I would like to see one before I start buying the dip into the next bull leg.

After hours activities highlight GOOGle earning release. GOOG did well by exceeding analyst estimation. GOOG reported 3.68 EPS vs analyst' 3.30 EPS. Stock is up as much as $10 from the day close of 471.65.

Let's see whether GOOG earning will drag the futures up significantly tomorrow.
I personally think that the three DOW and S&P members: Catterpillar INC (CAT), Pfizer Inc (PFE), and Mc Donalds Corp. (MCD), will set the tone to the futures trading tomorow. All will release earning before market open and should set the sail for early hours.

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