Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 26th of April.
Gross Domestic Product (GDP) expanded at a tepid 2.5 percent annual rate, the Commerce Department reported on Friday, after growth nearly stalled at 0.4 percent in the fourth quarter. The dismal increase missed economists' expectations for a 3.0 percent growth pace. I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration.
Amazon, A Big River Of Opportunity
Yesterday, Amazon (NASDAQ:AMZN) announced their earnings and while there was some good news, there was also some bad news. The bad news is that their profits decreased by 37%. While most analysts were looking for a decrease in profits, it was a little larger than anticipated. Jeff Bezos continues to spend heavily on infrastructure and new technologies to the detriment of short-term profits. The Street seems to love this idea and it's reflected in the stock that everyone seems to love even though it's not making any money. In Amazon's conference call, the Amazon mantra was repeated again, “we believe putting customers first is the only way to create lasting value for shareholders.” How true that is. We will analyze Amazon's stock today using our Trade Triangle technology.
Is Gold In A Bull Or Bear Market?
Even though we have seen a substantial rally in the gold market, I am still not convinced based on our Trade Triangles that we are starting a new bull market. Only time will tell if the recent lows are in fact, the lows. I continue to think that this market will be choppy until it settles down and builds a base to move higher.
Soros And JC Penney
What is the man who beat the bank of England doing buying JC Penney(NYSE:JCP) stock? Is he seeing something that nobody else is seeing, or is this just another crazy bet? Well, here is what I will be doing: if JC Penney stock moves over $16.27 today, I will be covering a short position, taking a nice profit of $2.40 a share and moving to the sidelines. Perhaps that's what George is seeing, the fact that this market has been moving sideways for the last several weeks and has not made another new low could be viewed as bullish. So, based on our Trade Triangle technology, I will be on the sidelines if the $16.27 level is broken to the upside today.
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.