Kenneth Reid's blog
The S&P 500 did not attain our 915 target yesterday, but it blew right through it at the open today on the strength on Intel's earnings and guidance. Here is the quote from the CEO: “Intel’s second quarter results reflect improving conditions in the PC market segment with our strongest first-to-second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half.” Full Article
11:30 am ET
The S&P 500 is testing its hourly resistance at the 200-ema, which is right here at 900-903. I expect the bulls will be able to take the index up to 915 today. Full Article
2:00 pm ET The S&P 500 has reached my target area of 895-900. This would be an ideal place for active traders to take some chips off the table. This also looks like an attractive low-risk entry area for China Green Agriculture (CGA), which is now at the lower band of its 6-week trading range. This is a stock we currently hold in our Model Portfolio in TSR Pro. Full Article
12:25 pm
By the way, Goldman Sachs is breaking above a 1-year trendline today and is now a buy for technical reasons. The stock could reach $175.
10:55 am There has been a great deal of talk about a 'head & shoulders' top in the S&P 500. A standard correction target from such a top is the height of the pattern projected downward from the neckline (in this case the neckline is formed by the May lows). That means a correction to the 800 level in the S&P 500. Full Article
1:20 pm
The S&P 500 is reluctant to let go of the support area around the May lows. Volume is very light, signifying little institutional interest in the market at this time. It is summer, after all. Full Article
12:35 pm
The S&P 500 reached an oversold condition yesterday and began a bounce that should take it up to 895-900.
One of the ways to play it is with oversold stocks. James River Coal (JRCC) is down about 30% over the last month and is now trading near solid support. It looks like an attractive swing trade.
Ditto for China Finance Online (JRJC). Here is a recent profile: Full Article
12:20 pm Yesterday was interesting in that the financials held up fairly well, while tech, energy and commodities dropped sharply. Bank of America (BAC), Wells Fargo (WFC) and JP Morgan JPM) were actually green. Today is a different story. Full Article
5:45 pm
The S&P 500 closed below the May lows on Tuesday, a bearish development that I have been expecting. Volume was moderate. There may be an attempt at a whipsaw reversal tomorrow morning, if a suitable news catalyst arrives, but this time I think the bulls will fumble the football. Full Article
11:15 am Last Thursday's downdraft was on low volume and on Monday the major indices were able to find support at key technical levels. That is the good news. I pointed out last week, however, that the seemingly bullish action on the surface disguised weaker underlying conditions. Full Article
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