Stocks Finish off the Lows but Can’t Shake European Jitters
Joshua is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
French elections and a debacle in the Netherlands helped spook investors sending European stock markets lower on Monday. Fears spread across the pond to the US as premarket futures were down close to one percent. There wasn’t any economic news to rattle the markets, nor help them. Apple (NASDAQ: AAPL) was able to close above its 50 day moving average, but that wasn’t before a volatile session. Buyers stepped up and supported the market at the day’s low showing a bit of strength. Volume was lower on the session as institutions weren’t too active in today’s market. We are still searching for day one of an attempted rally and a follow-through day before we get thinking about getting long this market.
Last Thursday’s market was a big tell with a lot of stocks reversing very nice gains. Not to mention the market appeared to head towards confirming a new market rally. Friday’s market was more of the same where the market was unable to sustain any resemblance of a rally. Today it was the first sign of some support, but without big volume it is hard to get behind today’s move. If volume had been huge and the market been able to climb too even we’d be signing a different tune. The market remains in a correction and we have yet to see any signs of stabilization.
To make this even more fun for the next few days will be the Federal Reserve Open Market Committee meeting kicks off and AAPL earnings after the bell Tuesday. Wednesday the Federal Reserve will announce its rate policy and the market will be dealing with AAPL’s earnings. AAPL has killed earnings! Last quarter the stock BLEW away estimates, but can it continue? Price action at the moment is very nice and given volume accompanying the action there have been big sellers dumping the stock. The stock is hanging by a thread. While the market digests AAPL’s earnings release it will have then digest the Federal Reserve’s policy statement upon its release. Will the Fed move the first rate hike to 2015?
This market continues to be difficult to tame and will continue to be until we can have a real correction without government intervention.
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