Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 25th of July.
Perception and expectations can be everything in the markets, and these two powerful forces sometimes trump the fundamentals and the technicals. Such was the case yesterday, when Apple reported its numbers for the quarter. It was a swing and a miss for Apple as they missed on both the top and bottom line. The after market was swift in its perception of the numbers, and pushed Apple down over 5% later in the day.
Today's early rally in stocks was largely caused by no more bad news from Europe, the Euro rally, and Caterpillar's earnings.
Let's not get carried away with happy times are here again, we still have a myriad of problems here in the US and all of the same growing problems in Europe. These problems, in our opinion, are going to be a drag on the market for the rest of the year.
We are sticking to our forecast of the markets being on the negative side of the ledger for the balance of the year. The caveat of course is going to be our Trade Triangles. If all of our Trade Triangles turn green, then we will adopt a bullish posture towards the markets. But right now, we are waiting for our intermediate-term Trade Triangles to turn negative (red) on the equity markets. Should that happen, it will propel all stock indices to lower levels.
DAILY PERCENTAGE CHANGES BY SECTOR:
| CONSUMER GOODS: -0.11% | Biggest Loser LO -4.72% |
| SERVICES: -0.25% | Biggest Loser AMZN -2.42% |
| HEALTHCARE: -0.13% | Biggest Loser UNH -5.58% |
| ENERGY: -0.57% | Biggest Loser COP -2.55% |
| TECHNOLOGY: +0.60% | Biggest Winner BRCM +9.25% |
| FINANCIAL: -0.07% | Biggest Loser AIG -1.29% |
| INDUSTRIAL GOODS: -0.45% | Biggest Loser GD -2.07% |
| BASIC MATERIALS: -0.47% | Biggest Loser BTU -6.88% |
| UTILITIES: -0.13% | Biggest Loser AES -2.46% |
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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