MPT Rating (03 Bearish)

17. July 2008 by admin.

Thursday, July 17th, 2008; MPT Rating (03) 

The markets get another boost from the selling in Oil and another great earnings report from (JPM) which beat Wall-Street estimates…

The DJIA gained another 207 points for the day and with big names like Microsoft, IBM, and Google reporting earnings after the close we may see this rally continue into the close of the week if we get more positive earnings surprises which simply inform the market that the economy may not be in as bad of shape as some would paint it.

The NASDAQ gained 27 points for the day will be very bullish tomorrow if the three mentioned stocks above do report good second quarter reports…  Having said this we must also consider the fact that tomorrow is Friday and though investors may like stocks here, they may not want to be overly bullish ahead of the weekend and thus we may see some stagnation in areas tomorrow after a morning bounce or sell off depending on the earnings front.  This is all hypothetical of course, and the main points to gather from this report would be that we see the market as bottoming and quality stocks are being bought back up in anticipation of the rebound ahead in the third and fourth quarters.

Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and what to expect with the overall market ahead, came in at (03) and back to back bearish indicators that the market is going to pullback and test this advance…  This does not have to happen immediately, but it will happen. The market is still heavily oversold and many stocks are still running heavily discounted ahead of earnings, but as in all cases when the market bounces all stocks tend to get a lift, and when it sells off all stocks tend to get discounted…  Know what you are buying and stay clear of the hype.  Tomorrow is Friday and this will add an odd element to the market as investors are not likely to sell off stocks ahead of this weekend too much, as this is where smart money is going to be buying quality stocks. (Naturally any major negative or bullish news could alter this analysis at anytime.)

As Always; Be Smart, Be Patient, & You Will Be Successful.

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