Today’s blogpost is all about trust. I have finally arrived at buy orders after sitting out most of the dip from the September High. I say trust, as I trust my system to keep me out of trouble and get me into great buying opportunities near or at market bottoms.
To be honest, I have no idea if this is the bottom or just another rung on the ladder down. But I trust my system and therefore I am back into the breach tomorrow. I am expecting a decent bounce at least, with positive earnings being the focus of Wall Street, we may see a good run up after what has been, in my opinion, too much selling.
There are of course more news on the horizon than earnings, we have quite a few reports out tomorrow, perhaps some will surprise to the upside?
U.S. stocks mostly advanced on Tuesday, with the S&P 500 and Nasdaq Composite halting their worst three-day rout since 2011, with the energy sector slammed along with the price of oil, as investors considered earnings from banking powerhouses JPMorgan Chase, Citigroup and Wells Fargo and waiting to hear from Intel.
JPMorgan Chase edged lower after reporting earnings that missed and revenue that beat estimates; Citigroup rose after topping expectations on both the top and bottom lines; Wells Fargo declined after matching profit estimates and reporting revenue just above expectations. Johnson & Johnson erased gains that came after with the diversified health-care company’s earnings.
After a 142-point gain and 47-point fall, the Dow Jones Industrial Average lost 5.88 points to 16,315.19, with Johnson and Johnson leading the drop and Intel leading gains; with the semiconductor giant reporting after the close.
After a dip into red, the S&P 500 added 2.96 points, or 0.2 percent, to 1,877.70, with industrials the best performing and energy leading sector losses.
The Nasdaq gained 13.52 points, or 0.3 percent, to 4,227.17.
On Monday, the S&P 500 finished below its 200-day moving average for the first time since November 2012, leaving it down 6.8 percent from its record closing high on Sept. 18.
Earnings: Bank of America, American Express, eBay, Netflix
8:30 a.m.: Retail sales for September
8:30 a.m.: Producer price index for September
8:30 a.m.: Empire State Index for October
10 a.m.: Business inventories for August
2 p.m.: Federal Reserve’s Beige Book
News Sources: CNN Money & CNBC