The market is in a critical junction now. S&P 500 is near 1,400 level, which is an important resistance level. If you can break and follow through, there is a good chance of uptrend continuing. Let's see how the market reacts this Wed on FOMC statement.
Recently, I talked about why I like Visa Inc. (NYSE:V). Now, almost a month later and with more data points, we have a clearer technical picture of it. It cleared $67 resistance and last Friday, traded above $69, its first trading day high as well as all time high since IPO, supported by very heavy volume. Today, it touch the tip of the uptrend channel before pulling back slightly intraday. This paints a bullish picture of Visa, but now may not be a low risk entry point. Wait for a pullback or after earnings on 28 April. Take note that Visa is now optionable. This coming week is filled with earnings reports and more earnings reports. Here's the calendar for the week.
We'll see many bellwether stocks like IBM, Google, Intel, Citibank etc reporting earnings this week. There is also plenty of economic data coming out this week. Be very careful with your trading and be sure to check for earnings date when you are swing trading.
Google Inc (NASDAQ:GOOG) is reporting earnings after hours this Thursday. GOOG is always a high profile stock but its not my trading style to place directional bets on earnings. Here's a preview of GOOG chart:
After staying in a downtrend channel for three months, GOOG has finally broke to the upside with series of higher highs and higher lows since end March. The move up hit the 50 day moving average which acted as resistance. Right now, the 20 day moving average and $450 level is providing some support. GOOG may well stay within the range of 50 day moving average and $450 until earnings is out. But with Intel Corporation (NASDAQ:INTC), another giant on the Nasdaq announcing tomorrow, it may very well move GOOG out of this range. Mon: Retail Sales, Business Inventories Notable earnings: ETN, GWW
Tue: PPI, NY Empire State Index Notable earnings: CSX, INTC, JNJ, STX
Alcoa Profit Falls On Higher Costs & Weaker Dollar
With Alcoa Inc. (NYSE: AA) having officially kicked off the earnings season on a bad footing, the S&P 500 E-mini futures is down after market (see chart above). It will be interesting to see how the market reacts to this earning season, given the challenging conditions faced by many companies on one hand, while on the other, many analysts would have probably factor in such assumptions in their valuation model.
Mon: Notable earnings: AA
Tue: Pending Home Sales, FOMC Minutes
Wed: Wholesale Inventories, Fed Chairman Bernanke speaks, Dallas Fed President Fisher speaks about U.S. economy Notable earnings: CC, BBBY