Awaiting Earnings

The market is clearly biding time until earnings. I doubt we will see a repeat of last earnings season when the market took off like a rocket ship. The market was oversold on a short term and intermediate term basis when earnings season kicked off and investors were highly skeptical. At present the market has room to rally into the end of the week but will then be overbought. Any rally is more likely to be a climax than the beginning of a new leg up.

8 comments:

Anonymous said...

So what level is overbought?

1100? 1150? I know it's close, just not here.

Tsachy Mishal said...

Its not a level. Its a period of time. At the end of the day Friday the market will be maximum overbought if it keeps going higher.

Anonymous said...

Yo dawg,

INTC beat earnings expectations. So you still think mkt sells of on this? Because looks like futures went up another 3 or 4 points after they announced.

Tsachy Mishal said...

We'll find out tomorrow. I don't think anybody was expecting anything but a beat.

Anonymous said...

INTC went up a buck after they announced another 5%.

I'm gonna start shorting in stages starting from 1085, 1090, 1095, 1100. I think equilibrium is at 1050.

Anonymous said...

INTC went up a buck after they announced another 5%.

I'm gonna start shorting in stages starting from 1085, 1090, 1095, and1100. I think equilibrium is at 1050.

Anonymous said...

I just checked out a coworker's Iphone for the first time.

Because of the Iphone, I think I'm gonna have to revise my upward target to 1250. I had no clue there was crap of that kind of technology out there. The US is doing something right.

MarketCynic said...

Classic buying panic after hours on the INTC earnings announcement. The price action told the story, and in general, when the markets are strong ahead of an awaited announcement, the tendency is to overshoot to the upside and then reverse.
INTC will be the excuse for those on the sidelines to buy, the sheep will no longer wait for the pullback and will rush head on.....over the cliff.
A false breakout to mark the top of this move up, based on INTC blowout earnings, you can not script it any better. Classic Wall Street.