Today has been a tumultuous day in equity markets. Earnings reports are driving the market into positive territory. Technology sector is telling a recovery story in the markets. Financials are rising up driven by stronger earnings report by Goldman. Investor fraud case still looms over Goldman. Market legal experts are in the view that this legal battle will be adding another feather to Gold man’s cap.
S&P 500 traded above 1200. On Friday, it staged a decline in reaction to SEC accusation on the Goldman. I thought may be a pull back and this might persist probably for couple of days. But like a sprint runner who slipped down and picked up his pace, financial markets have resumed their march higher at the behest of strong earnings reports.
On economy front things are still the same,
Unemployment high, consumer sentiment sullen
But Retail sales are higher, personal consumption expenditures are higher
Housing still struggling to improve
Manufacturing is faring far better with PMI and ISM indicators signaling expansion phase.
So where will be end of April: MY bet S&P 500 will rise another 2%.
I forgot to mention one point, Greece I think will be forced to do some kind of default if not this year earlier it will be definitely next year. I think this way because, if I look at Greece and its debt needs, these needs are going higher than being offset by any kind of positive revenue growth. In such a scenario core pressure on Euro’s underperformance will disappear. So Euro can possibly go higher.
I will come up with some trades I think can help generate money on this tomorrow.
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