The major theme for the market today was disinterest, which was fitting for a very dull week. We had some slightly positive action early in the day due to upbeat analyst comments on some big-cap technology stocks, but in general that fizzled. AAPL, however, did tack on over 1%.
The troops had just enough energy for a little last-minute run into the close but it wasn't anything too impressive. At the end of the day it was a bounce in oil and commodities rather than technology that helped. Volume was about the lightest of the year, and breadth ended up close to flat. Boring.
It was a listless summer trading today, but next week should be much more entertaining, as we have some major earnings reports due.
The most important reports hitting next week are NVLS, GS, INTC, JNJ, GOOG, IBM, JPM, BAC, C, GE, and a number of others.
Some of the analyst comments today lifted expectations a little in the technology sector, so it is going to be very interesting to see the psychology of the market in the near future.
Stocks reacted quite well to first-quarter earnings quarter back in April, because expectations where so low and many companies did a good job of cutting costs. Expectations may not be as low this time, and a lot of cost-cutting has already been done. When you combine that with deteriorating technical conditions, the potential for a sell-the-news reaction is fairly high.
Betting on earnings is always a roll of the dice, but once they are out, they create some good trading opportunities as they are digested. At least the action should be much more interesting than it was this past week.
And yes, I continue to like AAPL and BAC very much at these prices.
long AAPL; long BAC
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