Canadian Banks Reporting Earnings

The Canadian Banks are reporting earnings and the stocks have been moving up in anticipation. Bank of Montreal (BMO.TO, BMO), reported 4th quarter earnings this morning and have beat market expectations.  Since the March 2008 lows, this stock has had one of the best returns, as it was beaten down on speculation that its dividend would be cut.    Pre-market, price is unchanged.  Provisions for credit losses are still rising.  BMO has also bought the "Diners Club" operations from CITIBANK (C).  The remaining banks will report later in the week.  Interestingly, there were some large block trades towards the end of the day on BMO.  You can sometimes find this information at the TSX exchange site (www.TMX.com)

In US Company earnings, Hewlett Packard (HP) has met expectations for the 4th quarter and has raised guidance for 2010.  Also US GDP rose 2.8% in the 3rd quarter, matching expectations.

Futures this morning are mixed and the DAX is essentially flat, indicating a flat open.  The market bias indicators are showing a very mild downside bias and the market conditions scans are showing a slightly bullish stance, but neither is showing strong directional bias that is reliable.  This, along with the short week, suggests speculative price action.  The Canadian markets continue to be supported by the speculative demand for commodities and financial services.

Index	Change	%Change	Level	Phase
TSX	+44.69	+0.39%	11624.02	Bullish
DJIA	+132.79	+1.29%	10450.95	Bullish
Nasdaq	+29.97	+1.40%	2176.01	Bullish
SP 500	+14.86	+1.36%	1106.24	Bullish
Russell 2000	+10.13	+1.73%	594.81	Warning
NYSE	+101.86	+1.44%	7186.33	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways to down

Market: Trading Range

Sector	Phase
Consumer Staples	Bullish
Healthcare	Warning
Technology	Bullish
Utilities	Warning
Energy	Bullish
Financials	Warning
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart