After a day of some choppy action and some consolidation we basically closed out a flat day. This morning we are looking at some red premarket. As we talked about in this weekends video oil appears to be decoupling from the market. Yesterday we tried to close out flat in the indexes while oil was weak the entire day. Oil is taking another hit premarket on some news coming out of Iran with their target production numbers of 2.5 million barrels per day. We get earnings out of XOM this morning on the heels of the worst earnings report out of BP in more than 20 years.
We talked about how important employment numbers are and one of the recurring themes we have been seeing lately is announced job cuts. BP plans to lay off 7000 while YHOO is expected to announce a 15% reduction in their staff. The trend has not been encouraging but we will get a clearer picture from the employment report at the end of the week.
It wasn't all bad news, GOOGL crushed on earnings and blew past that 800 level in after hours action. The IBB staged a late day rally yesterday and as you know if we are going to have a sustained rally in the markets its my belief that we need the Biotech's to participate. We also had a couple of M&A announcements yesterday.
As the market absorbed last Fridays move we experienced some choppy action .Volatility continued to decline and the trading action was more of the quick hit type that scalpers can thrive in.
Looking forward, I think we can expect more of the same as we move through this earnings season. Earnings have not been great and we are getting a lot of lowered guidance but it doesn't appear that the wheels are falling off. There is still a chance that things may not be as bad as anticipated.
While I am still hopeful that we could still put together a decent rally over the next couple of weeks. There is no denying that there is still a tremendous amount of negativity out there and it may be more difficult than I anticipated.
This is not a market where you want to be chasing anything! Make sure you have a clean setup and a disciplined approach, with a clearly defined game plan.
My focus ETF & ETN List
Volatility Oil Biotech
UVXY XIV TVIX UWTI DWTI GUSH DRIP IBB LABU LABD
Gold Dollar
GLD NUGT JNUG DUST JDST GDX GDXJ UUP
Transports and trucking companies could get a boost today off UPS Earnings
FHCO earnings
HNSN pr already> ran into this news
FIT upgrade
ENZY pr Thin one
IPXL pr gapper
KORS earnings
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