Friday, April 20, 2012

Stocks Try To Close Out Week On A Positive Note

The markets are higher in early trading after another batch of better than expected earnings reports and some renewed buying interest in Europe. 

Earnings reports have continued to come in fast and furious.  As I scan the reactions to earnings announcements among stocks this morning, I'm seeing a lot more positive reactions than negative ones.  Although there were some disappointments as well.

Stocks rising on earnings results include:
  • MSFT, HON, GE, MCD, COF, UA, SLB, VMI, BGS
Stocks declining related to earnings:
  • DLR, EXPD, CMG, SNDK, TPX, RVBD
Asian markets were mixed overnight, while Europe's markets are higher this morning.  A positive reading for Germany's business climate helped boost sentiment abroad.

The dollar is lower vs. the euro today, and that is helping commodities.  Oil prices are higher above $104, and gold prices are higher to $1645.  Copper prices are up today also.

The 10-year yield is getting a small bounce, rising to 1.99%.  But the VIX is seeing a big plunge today, down -7% to 17.0 which is just below the 50-day average.  Today is options expiration which could be exacerbating some of the trading in the options market today.

Trading comment:  The S&P 500 is currently in position to finish the week on a positive note.  But trading has been choppy, and the days when the market has been higher have not been accompanied by the usual rise in volume that the bulls look for.  In this situation, we like to focus those names that have beaten earnings and seen big pops in their stock.  Those are usually the stocks where demand will remain strong and investors can use upcoming dips and pullback in said names to add to their positions.  We don't want to bottom fish in the laggards in hopes that they play catch up.

KAM Advisors has long positions in HON, MCD, BGS, DLR, EXPD

2 Comments:

At 5:15 AM, Blogger hayusd said...

your analysis is very good.

 
At 11:54 AM, Blogger Patricia Camacho said...

Knowing the field is the safest move, Thanks for sharing.
























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