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Market Direction: Not Certain

July 27, 2008 1:09 PM

energyorbit.jpgThere are still a ton of earnings releases the next two weeks. Considering that the market has largely ignored any and all negative outlooks from most all companies, I am not certain of the direction. I still remain exceptionally skeptical, but we will see.

If you recall, the last time the market rallied two plus months ago I mentioned several times (before it fell) that “the market is so optimistic, it is scary”. It was ignoring any and all data and just kept marching higher. Well, we ultimately saw the result of that.

Personally, I would still like to see a firm low in the SP. But so would virtually everyone. That is probably why it has not happened.

On Monday, there is no economic data being released. Therefore, it will probably move on earnings and possibly oil, once again. The data picks up late in the week. In addition, the “no naked shorting” of the 19 large financials is scheduled to end on July 29th, unless extended. I suspect it may well be extended. The President will likely sign the Housing Bill this week and that may provide some temporary “euphoria” that the housing problem has seen a bottom. While this will help, I highly doubt it will resolve the issue.

Tradestalker had 1292-1293 on the futures as “major” resistance. It hit it on Wednesday before dramatically falling back. I still cannot figure out how and why he makes those calls in areas not seen in a long while, but apparently he has his methods.

Open Update: Well, the market seems uncertain as well as the futures are completely flat 10 mins before the open.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

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