NobleTrading Weekly Market Letter 01-16-2007
The Week Ahead: An upside surprise in consumer spending has the likelihood of a near term interest rate cut reduced. Watch Wednesday as December's PPI, industrial production, and capacity utilization provide further evidence to this matter. Also, Thursday has an important December CPI report due as well as housing starts and the jobless claims numbers. Finally as the week ends the University of Michigan consumer sentiment report for January is released.
Stocks to Watch: Advanced Micro Devices (AMD) warned of a profit and revenue shortfall due to falling prices and was also downgraded. Look for an oversold bounce near 16. Terra Nitrogen (TNH) which sells fertilzer is benefiting from higher than expected corn production according to a USDA report. Other fertilizer stocks to watch are AGU, CF, MOS, and POT. Look for key earnings reports from Apple (AAPL), Citigroup (C ), Intel (INTC), JP Morgan (JPM, and Merrill Lynch (MER) during this week.
Special Note: The multi-month run to new all time highs in the Dow Industrials continues unconfirmed by the S&P 500 and NASDAQ. The long term sentiment figures as evidenced by the Investors Intelligence advisory sentiment survey shows an unprecedented 221 straight weeks of more bulls than bears. This 4 year string of unbroken bullish posturing by advisors acts as a huge contrary indicator for the market as a whole. In addition, 12 out of 12 strategists at the largest Wall Street firms are bullish for 07'. A defensive strategy now seems prudent.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Advanced Micro Devices (AMD) warned of a profit and revenue shortfall due to falling prices and was also downgraded. Look for an oversold bounce near 16. Terra Nitrogen (TNH) which sells fertilzer is benefiting from higher than expected corn production according to a USDA report. Other fertilizer stocks to watch are AGU, CF, MOS, and POT. Look for key earnings reports from Apple (AAPL), Citigroup (C ), Intel (INTC), JP Morgan (JPM, and Merrill Lynch (MER) during this week.
Special Note: The multi-month run to new all time highs in the Dow Industrials continues unconfirmed by the S&P 500 and NASDAQ. The long term sentiment figures as evidenced by the Investors Intelligence advisory sentiment survey shows an unprecedented 221 straight weeks of more bulls than bears. This 4 year string of unbroken bullish posturing by advisors acts as a huge contrary indicator for the market as a whole. In addition, 12 out of 12 strategists at the largest Wall Street firms are bullish for 07'. A defensive strategy now seems prudent.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
phone: 877.872.3311
web: http://www.nobletrading.com
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