Look for Pressure

Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management

Before I begin, remember the markets are closed Friday for Good Friday.  Enjoy with your family if you have the time off.

We will be doing The Wall Street Shuffle radio show Saturday and will be sending a video at 9:30 Saturday morning via e-mail to accompany the show.  You can visually follow along the themes, trends, and even a few specific investments we feel are actionable.

Now, to the markets.  We had a solid day yesterday after Fed Chairwomen soothed markets implying that the Fed wouldn’t raise rates anytime soon.  Was there every any question?!

Anyway, right after she spoke the markets took off, had a midday lull as they digested her words about a weaker economy.  Ultimately the markets moved higher closing at their highs of the day but the internals weren’t particularly strong as prices implied.

The NASDAQ is just above support but is still under its 50 day moving average (50 DMA).  I have a graph accompanying this article so you can visualize.

 

 

 

 

But then you have Google (GOOGL – new ticker).  After the bell yesterday GOOGL disappointed missing on both revenue and earnings.  Google was down in after-hours trading and gave up all of its gains for the day.

IBM also disappointed and it was down around -4% after-hours.  We have a whole slew of earnings today which will be important if the markets intend to shrug it off and firm up.

I believe the markets will come under pressure at the open, and then again toward the close (if not before).  Pressure at the open will be due to Google, IBM, etc… from last night.

Pressure at the close will be due to the 3 day Holiday weekend.  Traders will now want to hold their positions over the long weekend, especially with escalating tensions in the Ukraine.

These markets are currently “sloppy & choppy” and difficult to manage.  So people ask me all the time, “what is working?”

The short answer is energy.  We own 3 energy stocks which are all doing quite well.

Bonds are also acting well right now.  These are ways to make money without having to deal with so much volatility and stress until the markets decide on a discernible trend.

For a complimentary portfolio review, e-mail me at Dan.Stewart@NorAmAsset.com and we would be happy to review positions.  We can evaluate your sector risk and individual equity exposure.

We have economic reports including.  We have 25 companies reporting on the S&P 500, 4 of which are also included in the DOW.

We have 38 companies reporting in the broader markets.  Some notables are below.

Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW.  You can also listen via iHeart radio.

Again, as a newsletter subscriber, you will receive short weekend video at 9:30 a.m. on Saturday so you can watch & then follow along on The Wall Street Shuffle radio show as we will be covering these topics specifically.

I hope you enjoy the show.  If you have any investment questions you would like discussed on the air or specific investment questions in which you would like personal advice, e-mail me at Dan.Stewart@NorAmAsset.com and I will be happy to respond.

Dan Stewart CFA®
Chief Investment Officer
NorAm Asset Management

Economic Reports Today:

Initial Jobless Claims
Philly Fed Business Outlook

Some Notable Earnings Reports Today:

Du Pont (DD)
UnitedHealth Group (UNH)
General Electric (GE)
Goldman Sachs (GS)
Baker Hughes (BHI – before market)
Sherwin-Williams (SHW – before market)
Schlumberger (SLB)
Blackrock (BLK – before market)
Morgan Stanley (MS)
Alliance Data Systems (ADS)
Mattel (MAT)
Union Pacific (UNP)
Chipotle (CMG)
Home Loan Servicing Solutions (HLSS)
Overstock.com (OSTK)

 

The information presented is for educational and entertainment purposes only.  Opinions and information expressed are based upon information considered reliable.  However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.  

Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase

of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.

 

Investments involve risk and unless otherwise stated are not guaranteed.