Tuesday, July 22, 2014

NASDAQ to rally on buoyant quarterly reports

A number of companies have reported quite decent results for Q2. NASDAQ has been a bit weak lately, so it's natural for it to rally on occasion, especially when news is good. NASDAQ is still within its recent trading range, so on occasion traders and short-term speculators will attempt to see if the market is ready to break out of that range. NASDAQ is still 1.5% below its recent short-term peak, so it has plenty of room to move before bearish speculators feel an obligation to try to knock it down as a matter of principle.
NASDAQ futures are poised for a big pop at the open, but the question remains whether that kicks off a short squeeze and people pile on, or whether people sell into the rally, and whether people buy on any dips.
Ukraine and Gaza (and don't forget ISIS and Iraq and Syria!)? They always were just distractions, props used by traders and speculators to distract people from actual underlying economic and business fundamentals. Sure, they'll pop up again at various points in time, but true long-term investors should always ignore such distractions – except to buy on such irrational dips.
-- Jack Krupansky


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