D&D Note
Recall those commercials “Dude! Your getting a Dell”? Well, times have certainly changed and Dell (DELL) reported disappointing earnings, sales, and outlook – which culminated into the stock getting hammered today down 16.82%. The Dell numbers brought down many other tech stocks on the day including; Microsoft (MSFT), Intel (INTL), Cisco (CSCO), and Hewlett-Packard (HPQ).
Facebook (FB) got a dead cat bounce today up 4% after falling 18% from the IPO. Watch the stock closely over the next few trading sessions to see if a floor develops. This will be a long term good stock to own, near term not so good. The latest rumor is that Facebook is now in talks to possibly delist from the Nasdaq and move to the NYSE, however the NYSE has come out after the bell and said they are not in talks with Facebook…
Apple (AAPL) rallied nicely today up 2.44% and closed above $570 at $570.56. If we can hold 570 and close the week above the 570-580 the stock should be poised to continue the rally and perhaps take out all time highs going above $650 based on technicals.
Tonight is yet another European summit to attempt a fix to the sovereign debt issues. All eyes are on Greece and whether or not they will exit the Euro. Within the next 6 months we should see the Euro devalued and perhaps fall near parity to the Dollar, so plan your August/September vacation in the Eurozone.
Asian investors (and truthfully all global investors) are now hoping that China will take decisive action and soon. Steps would include again lowering the RRR (reserve-requirement ratio) and a rate cut sooner than later (a lot will be determined by their May numbers).
Iran welcomed nuclear inspectors which caused Oil to fall 1.8% down $1.70 to $90.17. Again watch for this price to hold, if not we could slip down to $85 a barrel, we did hit $89.28 intraday, but rebounded off that price. Six world powers are holding talks with Iran in Baghdad today, where perhaps an agreement can be had to end sanctions.
Gold got hit falling 2.5% down $39 to $1,536.80.
Investors flocked to the safe haven of the 10-Year US Treasury pushing the yield back down to 1.72%. Which still asks the question who is buying treasuries at a loss? Why would you buy an asset that immediately looses you value? We already get screwed on autos like that… investments are not supposed to loose you money.
Overall the markets rallied very well at the end of the day on not really any definite news, so many are pointing to technicals and Euro rumors. There was also very high correlation among the indexes and stocks got lifted by the rising tide. Also once again come 11:30 am eastern time (the same time that the European markets close) we saw a direct reversal of the charts from descending in the morning to rising post Euro close, this has now become about a 10 day trend. What that means is traders recently have simply been able to buy at 11:30 and sell by 3:30.
On the day the DOW (INDU) finished rather flat down -0.05%, the S&P 500 (SPX) ended up 0.2%, and the Nasdaq (COMP) was up 0.4%.
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