As we begin the week, there are a number of earnings releases this week. In the short term the market will be focused on Bank and Tech companies. More so banks as the economy is teetering on a recession. Banks are a big factor as many investors are waiting for the next to go. Big banks seem fine but we have numerous bank stocks on deck, most don’t expect many homeruns but strike outs. The conditions are ripe for it.
You can check the earnings calendar on Yahoo. It gives you a great preview of the week ahead. The markets are flat today and it will be like a sling shot. It is pulled back and ready to launch but where will the momentum take it? Good or bad news will send the stock market in a volatile move. The market moves could be violent as it doesn’t seem to have certainty in the state of the market, the FED and the consumer attitude. There are as many good factors as negative ones, but the negatives seem to be the preferred favorite.
Over the next few months, caution is urged (which is negative) until we have more of a clear path. The focus should be on earnings revisions. What is the future of companies? Are they viewed to be moving toward improvements in business and growth. The sense on the street is NO. This will be figured out sooner than later. Just buckle up. It is the bottom of the 9th, bases loaded, down by 1, and 2 outs, so what will the next hit be? Let’s win the game but there is always tomorrow.
Stay focused on the long-term. We know there will always be negative periods but the mood in the game and the future of the team depends on the coaches to keep our head in the game. What will be Washington and the FEDs next moves? The market trades on certainty and confidence, both seem to be lacking in a big way.
Keep an eye on earnings and just stay focused on the next 5 years. Usually, such big downturns are followed by tremendous upside. This is a rebuilding phase, but it is not fun going through it. WE need a voice of reason to keep us optimistic because we know the current negatives will be temporary.
More tomorrow. Keep your head down and stay investing.
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