MV Weather Report: No Clouds in Sight for S&P
Rain or shine, we reivew the day's biggest stock stories.
Intel (INTC) was the story of the day as the company came out and raised its third-quarter sales forecast. The company raised its expectation for revenue to $9 billion vs. the expected $8.55 billion. The company also said gross margins are expected to be in the upper half of the previous range of 53%.
Out of the gate the news gave stocks an immediate lift but unlike previous days, the bears were able to knock the market down. For the day the S&P 500 closed down -0.20% to 1028. The Nasdaq, led from the strength of Intel, closed up 0.05% to 2028.
Today on the Buzz and Banter, Professor Jeff Cooper gave his thoughts on the reversal in the market.
"You can call it a new bull market, or you can call it a bear market correction.
"You can call the gap today in the SOX a breakout of a mini-cup and handle or it may signify a buying climax.
"If the SOX gaps down next week you can call it an island reversal. See chart of the Sox here.
"If Apple (AAPL) closes in the bottom of its range today you can call that a Gilligan's Island (a gap to a new 60 day high with a close in the bottom quartile of the day's range).
"You can call the August Action in AAPL a megaphone topping pattern.
"You can call the market crazy because the fundamentals don't support a 50% rally, but that doesn't mean it isn't happening.
"You can say that oil is leading the market around or that the dollar is leading oil around which is leading the market around….
"But this isn't your mother's market…
"Don't call it logical."
Cooper brings up some very good points, this definitely isn't your mother's or father's market. Those markets typically would pull back before advancing higher. This market won't pull back and it's beginning to frustrate bulls and bears. Everyone was looking for a correction but the market never pulled staying in a tight trading range between 1015 and 1039.
Next week will be more of the same as many investors go on vacation during the last week of the summer. Check out the trading radar for a look at the week ahead.
That's it for this week. See everyone back on Monday. Have a great weekend!
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