Despite a strong morning in the energy stocks, the financials sold off into the afternoon causing the TSX to close in the red. Bank of Montreal (BMO.TO) reports this morning and the bank earnings reports are likely the catalyst for the decline as investors await the outlook for the Canadian banks. Similarly, the US markets started out strong and ended the day mixed.
The market condition scans are still slightly bullish, but energy and volume remains weak. The market bias indicators are still showing negative indicators suggesting statistical bias for more sideways to down action. The futures and the DAX are positive this morning, indicating a positive open.
We were filled on NTAP, but not EJ. The scans are not showing any strong entries for this morning, so we only have one position for now.
We are in a market where investors and traders are looking to earnings as a catalyst for stock choices. This is seen in the price action. For example, when Canadian Pacific (CP, CP.TO) reported better than expected earnings, the stock price moved up substantially.
President Obama has once again appointed Ben Bernake to chair the Federal Reserve for a 2nd term. S&P/Case-Schiller index data on housing in the US came out better than expected.
BMO earnings tops estimates by a dime.
| Index | Change | %Change | Level | Phase |
| TSX | -41.21 | -0.38% | 10789.97 | Bullish |
| DJIA | +3.32 | +0.03% | 9509.28 | Bullish |
| Nasdaq | -2.92 | -0.14% | 2017.98 | Bullish |
| SP 500 | -0.56 | -0.05% | 1025.57 | Bullish |
| Russell 2000 | -1.27 | -0.22% | 580.24 | Bullish |
| NYSE | -5.12 | -0.08% | 6671.14 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a positive bias
Energy: weak
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Bullish |
| Technology | Bullish |
| Utilities | Bullish |
| Energy | Bullish |
| Financials | Bullish |
| Industrials | Bullish |
| Materials | Bullish |
| Consumer Discretionary | Bullish |
Source: Telechart
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