Earnings Season

We are in the heart of this quarter’s earnings season and stocks will move in response to the news.  Yesterday, markets opened with a gap down, recovered during the day and then sold off again in the last hour, which is consistent with what our scans are telling us.  Today, the Bank of Canada makes its announcements with respect to quantitative easing.  Canadian retail sales numbers came in better than expected this morning. US jobless claims came in as expected. Apple (AAPL) and EBay (EBAY) both came out with positive earnings reports yesterday after the market close.  Potash Corporation (POT), earnings came out lower than expected.  United Parcel (UPS) also missed expectations.  Natural gas inventories are reported later this morning.

Gold, silver and oil are up marginally this morning but remain in their trading ranges.

  As of this writing, futures are positive and the DAX is slightly negative, indicating a positive open.   The market condition scans are once again showing no strong directional bias although the buy momentum numbers are greater than sell momentum numbers; the numbers are low, suggesting lack of positive follow through.     The market bias indicators continue to show a neutral bias, indicating once again a choppy indecisive market that remains in a bottoming condition. 

Index	Change	%Change	Level	Phase
TSX	+31.98	+0.35%	9279.15	Recovery
DJIA	-82.99	-1.04%	7886.57	Recovery
Nasdaq	+2.27	+0.14%	1646.12	Recovery
SP 500	-6.53	-0.77%	843.55	Recovery
Russell 2000	+0.66	+0.14%	470.71	Recovery
NYSE	-48.98	-0.92%	5290.61	Recovery

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: moderate

 Primary Trend: Remains down to sideways

Sector	Phase
Consumer Staples	Recovery
Healthcare	Bearish
Technology	Recovery
Utilities	Bearish
Energy	Recovery
Financials	Recovery
Industrials	Recovery
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart