{"id":6848,"date":"2013-07-24T07:26:13","date_gmt":"2013-07-24T12:26:13","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=6848"},"modified":"2013-07-24T07:26:13","modified_gmt":"2013-07-24T12:26:13","slug":"before-the-open-jul-24-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=6848","title":{"rendered":"Before the Open (Jul 24)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\n The Asian\/Pacific markets closed mixed. India and Indonesia lost about 1%; New Zealand, South Korea and Taiwan did the best but none of the markets gained 1%. Europe is currently up across-the-board. France, Germany, Stockholm, Switzerland, Italy, Spain and the Czech Republic are leading. Futures here in the States point towards a moderate gap up open for the cash market.
\n<\/span>
\n The dollar is up slightly. Oil is flat; copper is up. Gold and silver are down.<\/span>
\n The tech sector has been lagging lately, so it’s worth mentioning AAPL did well with earnings yesterday after the close. The stock is up almost 5% in premaret trading.<\/span>
\n Perhaps AAPL can improve sentiment within the sector, which may help the Nas 100 negate the negative divergence shown below. <\/span>
\n\"\"
\n Otherwise the market is beyond technical analysis. Overbought can stay overbought for a long time. Trendlines right now have little meaning. Normally a chart graphically tells us what’s going on in a stock, and trendlines tells us where buyers and sellers are likely sitting. But not right now. The market is on a mission right now. Your best course of action is to continue playing the long side while noting the risk\/rewards are not great, and the run will come to an end sooner or later. <\/span>
\n Don’t over analyze. Recognize every once in a while you need to lay your TA tools down and just let the market do its thing. Now is one of those times. <\/span>
\nHere are headline stories from barchart.com…<\/span>
\nApple (AAPL) rallied sharply by 5% in after-hours trading yesterday after reporting Q2 EPS of $7.47, which was well above the consensus of $7.30.<\/span>
\nEarnings reports released thus far this morning have mostly been positive but there were some high profile disappointments such as Boeing and Caterpillar. Notable reports include Reynolds American (RAI -1.99%) (0.84 vs 0.835), WellPoint (WLP +0.59%) (2.60 vs 2.08), Thermo Fisher (TMO -0.90%) (1.32 vs 1.30), Praxair (PX -0.01%) (1.49 vs 1.48), Wyndham (WYN -0.15%) (0.98 vs 0.91), Eli Lilly (LLY +0.71%) (1.16 vs 1.01), Northrop Grumman (NOC +0.36%) (2.05 vs 1.71), Pepsico (PEP -0.23%) (1.31 vs 1.19), Moody’s (MCO +0.68%) (1.00 vs 0.91), Ford (F -0.59%) (0.45 vs 0.37), Motorola Solutions (MSI +0.18%) (1.12 vs 1.04), Seagate (STX -3.23%) (1.20 vs 1.19). Negative reports this morning include Dr Pepper Snapple (DPS -0.29%) (0.84 vs 0.842), Allegheny (ATI +1.94%) (0.04 vs 0.12), AmerisourceBergen (ABC -2.31%) (0.73 vs 0.74), T Rowe Price (TROW -0.52%) (0.92 vs 0.95), Boeing (BA +0.87%) (1.41 vs 1.58), Caterpillar (CAT -0.56%) (1.45 vs 1.68).<\/span>
\nVirtually all of the earnings reports released after yesterday’s close were above consensus. Notable reports included Robert Half (RHI -0.14%) (0.46 vs consensus of 0.43), Electronic Arts (EA -0.75%) (-0.40 vs -0.60), Juniper Networks (JNPR +2.84%) (0.29 vs 0.25), Discover Financial (DFS -0.33%) (1.20 vs 1.15), International Game Technology (IGT -3.12%) (0.33 vs 0.31), and Linear Technology (LLTC +0.57%) (0.43 vs 0.42). Companies that reported worse than expected results included AT&T (T +0.65%) (0.67 vs 0.68), and Norfolk Southern (NSC -0.66%) (1.46 vs 1.49).<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\n