Posted February 3, 2012 21:37
For all traders this past week, the market was very volatile. Four out of the five trading days, the common theme was reversals. The market either started out negative and then ended the day positive or began the day in positive territory and then finished the day in negative territory.
The one bullish catalyst that the market received was Apple’s blowout earning report. Apple earned $13.89 per diluted share and collected almost $46 Billion in revenue. Not only did this earnings release prove that Apple will achieve the momentous milestone of being a company with the highest market cap but, Apple continues to shine regardless of the current economic climate. It is remarkable that a product line can be recognized worldwide and such a huge hit for over a decade (particularly in light of their pricey products).
For the upcoming week, a bullish catalyst for the markets could be the potential of a Greek bailout deal. Although it is not certain that there will be a deal in the coming days, it is probable that there will be a deal in the coming weeks. If the markets respond favorably to this deal, especially the European markets, then it should provide the push that the S&P 500 needs to reach the 1350-1365 level that would give it a multi-year high. For the market to reach this level, it should probably take three to four months.
Lastly, Amazon will report its earnings this coming week This earnings report will give us insight to consumer spending and consumer confidence. The NASDAQ will react strongly to the news. If the earnings release shows a gain in EPS then it will prove to the markets that consumers are going and spending more. Even though Amazon is only an online retailer, it should still prove to us whether or not people are resistant to spend their money especially with the market being unstable.