Here come the big boys, and the
bears have left the building.
Apple and AMD earnings' reports after the close yesterday kicked off the big name company reports that should tell us if the market will keep sailing, or take a break.
While both announced very solid quarterly earnings, Apple did give a somewhat disappointing outlook for the next quarter. The after hours traders didn't seem to mind as it took Apple up 3.5%. The pessimist in me says the disappointing outlook will cause some profit taking before the end of the day. Investors have been buying the rumors. Now, good or bad, I believe they will sell the news and take some profits. That's what I see going forward.
While all the major indices were up yesterday, more stocks were actually down than up. I don't know if this was just a one or two day breather or the start of something more serious, but by now you know a pullback is what fits my market outlook as the indicators tell me the market needs a break.
I have pounded you with my message enough over the last couple of weeks and it is time to let the market do my talking. The only chart I want to show you today is the new AAII Investor Sentiment Survey. I've been curious about how bullish the herd has gotten with this over-extended rally and the results shouldn't be surprising, but wow!
Chart provided courtesy of www.decisionpoint.com
There are over 4 bulls to every 1 bear surveyed. Only 14% of those polled were bearish (think the market will go down) while 58% were bullish and think the market will continue up. That is the highest bullish percentage, and the lowest bearish percentage of 2005. Obviously the 4 to 1 ratio is also the highest of the year. These are exhausting numbers . The market may or may not drop but it will have a lot of difficulty moving forward from here and I just can't see the strength continuing much longer.
That's all for today. Currently 100% G fund. Until next time, thanks for reading.
Apple and AMD earnings' reports after the close yesterday kicked off the big name company reports that should tell us if the market will keep sailing, or take a break.
While both announced very solid quarterly earnings, Apple did give a somewhat disappointing outlook for the next quarter. The after hours traders didn't seem to mind as it took Apple up 3.5%. The pessimist in me says the disappointing outlook will cause some profit taking before the end of the day. Investors have been buying the rumors. Now, good or bad, I believe they will sell the news and take some profits. That's what I see going forward.
While all the major indices were up yesterday, more stocks were actually down than up. I don't know if this was just a one or two day breather or the start of something more serious, but by now you know a pullback is what fits my market outlook as the indicators tell me the market needs a break.
I have pounded you with my message enough over the last couple of weeks and it is time to let the market do my talking. The only chart I want to show you today is the new AAII Investor Sentiment Survey. I've been curious about how bullish the herd has gotten with this over-extended rally and the results shouldn't be surprising, but wow!
Chart provided courtesy of www.decisionpoint.com
There are over 4 bulls to every 1 bear surveyed. Only 14% of those polled were bearish (think the market will go down) while 58% were bullish and think the market will continue up. That is the highest bullish percentage, and the lowest bearish percentage of 2005. Obviously the 4 to 1 ratio is also the highest of the year. These are exhausting numbers . The market may or may not drop but it will have a lot of difficulty moving forward from here and I just can't see the strength continuing much longer.
That's all for today. Currently 100% G fund. Until next time, thanks for reading.
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