The Yahoo Finance headline: Stocks Edge Up on Expectations of Fed Move; Dow Hits 11,000 for First Time Since May- AP
It is the same explanation for the past week on an up day. The market is going up in anticipation of QE 2. Well, the FOMC meeting is 4 weeks away. Can they repeat this headline everyday for the next 4 weeks? We have earnings coming up next week, and it won't help the market. INTC is lagging the market ahead of its earnings. The banks are all laggards.
The market only cares about the techs and financials during earnings season. INTC earning come out Tuesday afternoon, that will likely provide us with a gap down on Wednesday. Until then, we can edge higher.
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3 comments:
how much longer can QE2 be talked about!!!
Well, at least till Tueday afternoon. I think INTC will disappoint and that will shift the focus away for a few days from QE2 to how earnings aren't that great.
IMO- I have no idea how intel will do with there earnings. But I think the banks, the big ones, will start doing better. You are correct that they have underperformed. I believe the risk/reward is good with banks,even if they miss, because they haven't been rallying as much as say tech.
Some think they might even reinstate dividends.
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