Fri Apr 23rd Weekly Recap & The Week Ahead
Monday, April 26th, 2010The market continues to move up on lower volume based on blow-out earnings from AAPL, GS, BAC, WDC….
We remain cautious for a number of reasons:
1. Nearly 40% of companies reported earnings; Most companies beat last year ‘s comparisons;
2. ObamaCare stocks continue to sell-off; Notably HMOs, Insurance Cos, and Biotechs; (i.e. WLP, HUM, AET, etc..)
3. Major indices (RUSSELL 2000, SPX, DJIA) are hitting 200-sma and are nearing Aug 2008 high
4. Greece is ready to tap the IMF for emergency loan of $18 bil due May 18;
5. Portugal CDS exploded higher; this implies that the Euro will weaken against the USD; Commodities move in the inverse direction of the USD;
6. GS in the government’s cross-hairs; The Obama Admin. is pushing for financial regulations and is using GS as a target;
Below are a number of charts to consider:
1. SPX — (S&P500)
2. DJIA — (Dow Jones 30)
3. WLP — (Wealthpoint Health)
4. GS
5. US Dollar
