Archive for the ‘Technical Analysis’ Category

We are essentially limping into the close with prices right around where we opened. The problem for me is two fold, no volume and the news vortex we are stuck in for the moment. The hardest thing for traders to do is of course nothing. Can’t force a trade when one doesn’t exist. We will see with two weeks to go before next FOMC decision we can perk up for a while, if not we will sit and wait. Ranges rule for now and until decided don’t try and predict.

Futures point to a negative start after erasing early gains. Bellwether General Electric (GE) provided a disappointing earnings report and outlook, citing weakness in financial services. GE said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. Looking ahead, GE expects its second quarter earnings per share will be $0.53 to $0.55 per share, which misses the expected earnings of $0.58. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus. European markets fell into the red after GE’s report, with the FTSE shedding 0.9% and the Dax down 1.2%. Also the airlines are falling apart on so many levels. Is this indicitive of the infrastructure problems our country will have with rails/roads/bridges/buildings over the next few years? Something to think about for sure.

Futures took a dump on the GE news and dropped 10, they are now down 20 from that news and trading @ 1348. New lows for this move, remember 1345 is the %50 retrace from the 1310 to 1390 recent FED rally move, so we could start to see some support at these levels.

GE is trading down 4 bucks @ 32.58, remember the March low here was 31.83. Bellweather for the market indeed.

We are seeing a slight sell off on the open with LEH writing off 300 million in money market funds they are closing, couldn’t meet another margin call . .. Retail stinky at best today, and another 57k jobs lopped off the top. What me worry? Market isn’t worried so far. ECB keeps rates firm and Bank of England cuts. There is a glimmer for savers in Iceland they raised rates again to squelch inflation and no are near 15% on their basic interest rates in Iceland.

We keep asking but the market just doesn’t know still, Where’s the Beef?