Stocks continued their slide yesterday, as the dollar is starting to show some strength. This recent move in the dollar is likely an oversold bounce. Most experts do not see a significant dollar rally, especially since the Fed has stated that they will not raise rates for an extended period. Raising rates is the best tool the Fed has to prop up the dollar…
Even though we’ve had a few rough days in the market, major averages are generally flat on the week, thus far. The S&P 500 started the week at 1093 and rallied to 1113 mid-week. Yesterday, the S&P closed at 1094, so we have basically stood still this week while volatility increased.
The three major indices are nearing their respective 50-day moving average. Keep in mind, stocks and markets don’t necessarily have to drop to hit their 50-day. Trading sideways for an extended period can do the same thing.
I suspect the Dow Jones, S&P 500 and the Nasdaq will all get even closer to the 50-day today. After the close, Dell Computer reported a very disappointing quarter. The company missed on both their earnings and revenues. Dell said in a conference call that sales of computers to big businesses remain sluggish. Dell earnings came in at $.23 a share versus and estimate of $.28 on revenues of $12.9 billion. Wall Street was expecting sales of just over $13 billion. Dell is trading down big in the pre-market…
I think this is what investors have been waiting for. Market sentiment is to buy on pullbacks. Over the past several months the pullbacks have been minimal. So keep your powder dry and get ready for opportunity.
Today is options expirations, so look for more volatility…
Have a great weekend…
| Tags: bounce, rally, rough days, stocks | ||
| Posted in News and Opinion |
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