Great Earnings from Microsoft Google and Amazon Push Market Higher
Today the DOW was up 157.54 points closing at 17646.70. The DOW is now down only about 177 points or 1% from the year to date open of 17823. The NASDAQ was up 111.81 points today closing at 5031.86, up 6.3% for the year. The S&P was up 22.64 points today closing at 2075.15, up 0.8% on the year. Great earnings from Microsoft (MSFT), Google (GOOG), and Amazon (AMZN) helped to push up the market. Microsoft traded up 10.08%, Google traded up 7.70%, and Amazon traded up 6.23%. The ECB talking about extending their quantitative easing program and all the signs pointing to the Federal Reserve not raising interest rates anytime soon also helped push the market up.
I stated that I thought the market would erase the losses of 2015 and be either slightly down or up single digits by years end. I am looking for the market to pull back and make a series of higher lows. November and December are very bullish months for the market. I am looking for a pullback in the DOW into the 16800-17200 range. If we do get this pullback on the daily charts I think there will be great patterns for buying opportunities in stocks such as Microsoft (MSFT), Google (GOOG), and Amazon (AMZN) and ETFs (exchange traded funds) such as QQQ (ETF which mirrors the NASDAQ).
Yesterday I stated that I am on the sidelines waiting to see what happens with oil. Oil has a buy signal on the weekly charts and a sell signal on the daily charts. Today oil was down 60-70 cents hovering around the 44.50-44.60 range. There is still no clear pattern in oil. If oil pushes up into the 48-49.50 range I would be looking to short oil off the daily charts. If oil pulls down into the 40-43 range I would look to buy oil off the weekly charts.
Today gold traded down to the 1158 range. I am waiting for an extreme oversold condition on gold. This extreme oversold condition would likely occur if gold traded down into the 1135-1145 range. I would be looking to buy gold purely based on the extreme oversold condition for a trade lasting 3-6 business days where I think gold could push up above the 1175-1180 range.