Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 24th of April.
Can We Trust This Market?
A number of years ago when Ben Bernanke took over the chairmanship of the Fed, little did anybody predict that he would be single-handedly supporting the entire stock market. I asked several colleagues of mine over the past few days, "what would happen should the quantitative easing that Ben put in place stop?" They all gave me the same answer, "the market would crash." That is not a particularly compelling reason to own stocks, in my opinion, if stocks are been artificially held up. I have said this before, the trend is your friend, and as far as the DOW is concerned, the trend remains positive.
What Now Apple?
Yesterday, Apple (NASDAQ:AAPL) announced their earnings and while there was some good news, there was also some bad news. The bad news is that their profit margins continue to shrink and that coupled with no new innovation coming out of Apple anytime soon, does not spell out a particularly rosy scenario for this stock.
I was lucky enough to be invited to appear on CNBC Asia yesterday evening to discuss Apple after they announced their earnings.
You may wish to participate in our Apple poll, where you can discuss whether you should buy, sell, or hold Apple at these levels.
Despite The Rally In Gold, It Remains In A Bear Market
The longer-term and bigger picture for gold remains negative, even though we have seen a substantial rally from the recent lows. I will be looking for an entry level to add to short positions in the not too distant future. Stay tuned to these updates, and watch for a red daily Trade Triangle to short gold.
Short-term traders would have exited crude oil on Monday for a nice profit. The pattern for crude continues to remain negative and I have not lost sight of our downside target of $80 a barrel. I continue to view this market in a counter trend rally near-term and want to re-enter a short position in this market when our daily Trade Triangle turns red.
On Investor's Minds:
Japan - Kuroda will do whatever it takes ...
Black Swan - the Boston Marathon
North Korea - On Hold ...
Europe - Cyprus, Portugal and Ireland - economic risk
The FED - Hints QE is coming to an end
May 19th – Debt ceiling suspension expire
Have a great trading day,
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.