Oversold condition, Fed, Earnings & GDP to impact indices.......

Coming week is full of high profile impact scenario......

From Tuesday earnings will take hold with AAPL,Wednesday FB, BABA & AMZN Thursday....

Wednesday @ 2 PM, Fed will issue their policy statement and have a chance to tone down their 4 increase scenario.

Friday is US GDP, expectations are 0.8% growth......IF we miss this low number, talk of recession will hit CNBC......

SO...we had 2 day rally in S&P 500 & Dow & one day rally in Nasdaq plus a day of major reversal, all credit goes to Mario Draghi ECB President to give a kick start to Indices worldwide, he is promising easing in March....

Earnings will be extremely company specific, most trader knows which companies are not faring well and will monitor closely how bad they are doing with results and guidance.

Bargain hunting is not recommended in this environment, treat bad earnings or guidance as dont buy.

Few companies are all set to report blockbuster earnings and they should be bought before and after earnings and guidance are given, this is an environment of "strong gets stronger"

Fed should tone down its language of "monitoring events worldwide" to being "concerned about events worldwide"

Oil is another negative for economic well being of world, low prices will negatively impact many economies, we may have seen the low in oil already.

Based on recent forecast, India will grow the fastest in the world with 7% GDP growth, China projection is around 6.5% GDP......

It is interesting, how India has come to forefront in GDP growth, Prime Minister Modi is creating an environment of growth by eliminating hurdles & implementing fast approval of projects.

US GDP growth may come around 3% in 2016

Canada may come in @ 2% GDP growth.....

SO..all in all, a very interesting week is shaping UP, equities should behave positively.

Good luck with your own ideas to make money in 2016.......

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed