Wall Street ready for profit taking

If the benefits of U.S. distributors to appear this week are as unimpressive as the results published so far companies, keeping Wall Street at the height of nine months will probably be difficult to justify.

Specialists believe that stock market investing in the U.S. market may resist a further increase, even with an agreement in the Greek case Monday and indicators confirming that the recovery is underway to United States.

Trading will resume on Tuesday, the markets are closed Monday for President's Day.

For the year 2012 was less than two months and the benchmark fund managers, the Standard & Poor's 500 Index was up over 8%. It is already higher than what many analysts were predicting the end of the year.

The index ended Friday at 1,361 points, its highest level since May 2011. In December, analysts polled by Reuters estimated that the index would end from 2012 to 1340 points.

If the index passed beyond 1370, it would be at its highest since June 2008, to its level before the collapse of Lehman Brothers, which took place in September 2008.

As for Dow Jones, he approaches the psychological level of 13,000 points and the Nasdaq Composite, that of 3000 points.

OPPORTUNITY TO PURCHASE

At the NYSE, 85% to 90% of the shares are treated above their 50-day moving average, said Bruce Zaro at Delta Global Asset Management in Boston. This is normally a sign that the market is overbought.

Bruce Zaro does not exclude a decrease of the S & P in the region of 1260-1270 in the short term.

Some experts, however, a passage above 1370 would be a buying opportunity.

"I'm kind of on the sidelines waiting to see it, but I'm down from there if it snaps," said Stephen Massocca, at Wedbush Morgan in San Francisco.

The percentage of companies that have published better than expected quarterly results is 64%, according to Thomson Reuters data, 404 companies have already published their accounts . This percentage has certainly improved since the beginning of the period of publication of accounts, but it is lower than 70% the last four quarters.

Among the major retailers will announce their quarterly profits this week include Wal-Mart and Home Depot.

Apart from the results and the Greek case, which should find a solution Monday, few indicators will be published this week: home sales new and old, consumer confidence according to the University of Michigan and registrations Weekly jobless.

To be continued as the general assembly of Apple Thursday and accounts of the first fiscal quarter of Hewkett-Packard on Wednesday.

The CBOE volatility index, also called fear index, fell 7.5% Friday, to 17.78. It is below the level of 25 for over two months, suggesting that investors are less worried about stock market prospects.

February 19th, 2012 in calculation, connection, corporations, different, occupation | tags: , , , ,