The sellers were back on Wall Street Monday with Dow off -2.13%, the Nasdaq-1.98% and the S&P 500 -1.94%. Despite Google’s great earnings last week, the market is still fearful of any news out of Europe. Asia took a hit Monday night and Europe is down as I write. Futures of the Dow and S&P 500 are off slightly on slower economic growth in the 3rd quarter for China but the Nasdaq 100 futures are bucking the trend on a batch of earnings reports from major American corporations including tech giant Apple.
Companies to report Tuesday morning include Bank of America (BAC), Goldman Sachs (GS), drug maker Johnson & Johnson (JNJ), and beverage giant Cocal-Cola (KO). It’s quite possible that Apple leads tech stocks higher today, especially considering Yahoo (YHOO) and Intel (INTC) are due to release results after the market closes.
Economic data Tuesday includes September producer prices at 8:30 a.m. EDT followed by NAHB Housing Market Index for October at 10 a.m. EDT. Then at 1:15 p.m. EDT Ben Bernanke will give a speech in Boston that could impact the market.
Yesterday’s drop combined with all these variables is why you didn’t receive a swing trade alert from me Monday. I like to have a good feel for the market when I swing trade and right now it’s hard to do that. Primarily because we’re just below the top of the channel we’ve been trading in and yesterday’s pullback either marks the start of another bear run to the bottom or some healthy consolidation after running up for almost 10 straight days.
If I find anything I like over the next few days, I’ll be sure to text and email you right away. Currently the portfolio is empty with no open swing trades. Here is a video I did this morning illustrating how to swing trade this channel.