Stock Market Commentary for April 12-16,2010
Company earnings season is upon us and how this earnings quarter turns out could determine the direction of the markets for the next few months. Basically, the market has gone up based on the premise that the US economy is improving and corporate profits are starting to come back. If there is any indication that this isn’t the case then you are bound to see a massive rush to the exits. Several big companies are reporting this week including Intel, JPMorgan Chase, Google and GE. Last earnings season, we saw a big spike in the markets only to see the markets sell off on good news. Could this be the case this time around?
Based on the charts, it tells us that the markets are still in an uptrend and until the trend is broken, we should be going higher. However, it’s better to wait for the markets to pull back before getting into a position. At this time, we’re on the sidelines waiting for this market to come back down before buying back in. I still like Natural gas here for a longer term trade and the best way to trade this is through the UNG ETF.
Good luck.
Mike
