As always are bias remains negative while we continue the search for a compelling growth narrative. Send me one if you find it lol.
The market ended the week on a positive note but we still seek some sort of reason for being in this market. Executive / insider selling tells me there is no compelling reason to be in the equities market and buying at these prices in this economic environment is a fool’s errand.
Coming Up Next Week: Corporate Earnings
In other news earning’s season begins next week so we’ll begin to see some numbers from corporations regarding 2nd quarter results. Based on the GDP numbers we’ve seen so far (and modest productivity increases) we expect to see earnings come in on par with expectations with no real surprises. I do have some concern from high profile tech companies such as Google (July 15th) and Apple – both of whom already have high expectations. Apple is my biggest concern as even if they beat estimates substantially (they almost certainly will) they are going to have to beat expectations by a LOT in order to satisfy present market valuations. I am betting on a substantial sell-off in Apple regardless of the final number (due July 20th). I expect both companies to beat estimates yet still disappoint. There’s no pleasing anyone in this market, is there?
Have a Great Week!
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