We last left you intently watching for Apple’s earnings and comments from the 2 day FOMC meeting. April is an intensely busy month for us here at Blackthorn as the Tax Man creates much consternation and money movement amongst our clientele. We have spent the past two days helping clients out of jams and delivering time sensitive information. We left you in good hands as we knew there was not much to be said until after Bernanke had his say and Apple reported their latest blowout numbers. Well here we are. Now what say you?
This is what passed for wisdom when we last met. We are watching intently the 1350 level on the S&P 500. The bulls need to hold the lows of April…If we hold we could consolidate and move higher still but corporate earnings will have to cooperate. This morning’s reaction in the futures is muted as bellwethers Exxon and UPS slightly disappoint and Spain seems to be imploding again. We were actually disappointed in the market’s finish yesterday and we may be in for more of the same consolidating back and forth as April comes to a close. There is a natural inclination for market pros to sit back for the summer months and take some profits as the weaker seasonal period begins. 1350 on the S&P will continue to be watched closely as the summer heat may help flare things up among Europe’s working class or more precisely non working class. Ireland’s referendum on the EU’s latest is looking like anything but a sure thing and the French elections promise to have exciting moments.
Jobless claims are higher than expected as we continue our march higher towards 400K. Revisions are higher as well. Always watch the revisions. Bullish sentiment of individual investors is well below the average suggesting to contrarians that the market has a tailwind. Conclusion: Market is still stuck in a trading range as market pros realize that Bernanke is not coming forward with QE unless something changes. Back to the trading range of 1350-1400 on the S&P. Spain is moving back to the front burner.
Answer: Harvey Haddix once threw 12 Perfect innings (and established the record of 36 consecutive outs) against the Milwaukee Braves in 1959 only to lose in the 13th inning.
Today’s Question: Alfred was Batman’s butler. What was the fictional character’s last name?
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. – Winston Churchill
Disclosure: This blog is informational and is not a recommendation to buy or sell anything. If you are thinking about investing consider the risk. Everyone’s financial situation is different. Consult your financial advisor.
