Cisco is the excuse today (Thursday) for the pullback, but we're also entering a period of reflection after the recent rally. I think we could see a 3 to 4 percent drop over the next few sessions, before we get back on track. |
Clearly, we're not out of the woods yet. |
Concerns remain that the economic data indicate the economy could slip back into a recession. Looking at technology, the fears are back in the market that third-quarter earnings may not live up to expectations. |
Core rate came in better than market expected, showing that inflation remains tame, ... Good news and the market should react positively, but the Fed will continue to raise rates. A good report. |
Dell Computer ( DELL : Research , Estimates ) is battered down here, revenue growth put into question as the whole technology group has been put into question but I think, you know, going forward that Dell will be a winner here and I think it should be bought at these levels. |
Demand for tech shares remains pretty strong. |
Earnings news has been discounted and investors are looking for a reason to take money off the table, ... Today, they found that reason in Microsoft's sales projections. |
Earnings news has been discounted and investors are looking for a reason to take money off the table. Today, they found that reason in Microsoft's sales projections. |
EBay came out with good numbers, but the outlook for the fourth quarter and next year wasn't so good, ... We're probably looking at a lower open, with a mixed trading session, as people respond to individual earnings and keep an eye on the price of oil. |
Energy prices are the reason for this. The crisis in the Middle East is obviously going to keep the price of energy at a strong level and that means this market is going to now be fearful of inflation exploding. We could be in for a further bumpy ride. |
Energy prices, earnings and the fall of the euro all continue to add to that wall of worry and the market is trapped here in a sea of uncertainty, ... There are no buyers and the selling just feeds on itself. |
Every day a refinery is opening up and that will ease some of the supply problems. |
For many months, the 'old economy' stocks were out of favor, but now people are starting to take some money off the (technology stock) table. |
From a 'wall of worries' standpoint, the market needs to be assured that there are no other casualties out there that are going to report weaker earnings, and from an energy standpoint, prices have got to move lower. |
From a technical standpoint, the fact that the market is testing the lower end of the trading range with low volume suggests the risk of the yearly lows being tested increases. |