Some technical improvement in indices.....

@ the close of trade, Nasdaq is above 50 DMA, Dow & S&P 500 still below 50 DMA.

CMF is positive in all indices.....

Nasdaq being above 50 DMA and CMF being positive, is a change in technical picture of major indices.

This week there are major earnings report, on Tuesday there is AAPL & CMG and on Thursday there is AMZN, GOOG & TWTR.

How these earnings fare with investors, will decide the fate of this market.

There is high expectations from above stocks, IF they fall short, there will be trouble for this market and stocks in question.

This earning season, there is skepticism about some of the high fliers.

Overall market is not behaving strong either.

After a long time, there is uncertainty about earnings.

Many stocks have moved quite a bit ahead from last earnings report, which makes them vulnerable.

I may end up selling, before earnings are announced, on most stocks.

AAPL is the only stock which has high comfort level for me, their guidance should be better, thanks to Samsung Note 7 flare up.

Markets change over time, we can only tell by observing, how markets have behaved in recent past.

For last 2.5 months, Dow has gone down , down and down, it has lost 522.73 points or 2.8%....

Nasdaq the best performing index, has lost 85.48 points or 1.60%......

Above stat is not a sign of healthy market, going into Q4 , which is the strongest quarter, especially in technology, Nasdaq has been weak for last 4 weeks.

I take my cue from monitoring TAPE closely, RSI is also 46.62 in S&P 500 and 50.69 in Nasdaq, while Dow @ 46.55.....not a vote of confidence by investors / traders / institutions.

SO....approach this earning season, as the time to liquidate your position, not expose yourself to market weakness.

Good luck with your own analysis of this market, and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed