Weird day yesterday. The Nasdaq got dinged because of AAPL & GOOG , the DOW was up and the S&P was basically flat. Obviously some of the big tech leadership is selling off and correcting. GOOG announced a 2:1 stock split that everyone hated the other day because it created a new series of non voting stock.
I will be watching AAPL and QQQ today. The latter landed right on its 50 day moving average yesterday, so it will be important to see if that level can hold as support.
The financials XLF acted well yesterday as C had a decent report. Energy XLE continues to act poorly though and tech remains under the gun for now, probably until GOOG and AAPL settle in.
GS reports this morning and the last of the two “mega” banks are still on deck, BAC and MS.
INTC reports after the close and that will be watched closely.
The big question for me is what is the next sector to run? Banks and tech have led (still think they will), but what is the next group? Is it coal, steel, materials? That’s the key. Sometimes the answer requires you to be wrong for a few weeks until bottoms get put in.
European stocks are higher this morning and their banks are higher. GS just reported earned 3.92 VS. an estimate of 3.55.