Contact Us Disclosures Blog
 
Make an Appointment Contact Us Podcast Blog
Market Commentary Audio Archives Book Shelf InvestAbility Center

Old Sayings That Fit

October 20, 2010 – 4:59 pm

The market sold off sharply yesterday with China raising their official interest rate by .25% and the dollar rising sharply as a result. A falling dollar over the last couple months has pushed stocks higher and if the dollar rises stock prices will fall. It has not always been that way. In past years a rising dollar was positive for the market but with a world economy grabbing everyone’s attention stock prices are more sensitive to the dollar movement.

Earnings this morning brought back the bulls as Boeing and other bellwethers reported better than expected numbers. That seems to be the story so far. Even Apple and IBM beat their expectations but when they did they sold off. It was about not being good enough. That is what outsized expectations do; it makes for an impossible situation. Still, when earnings go up stock prices go up.

Maybe we saw the old, ‘buy the rumor sell the news’ effect for Apple and IBM.

We should have a small pullback followed by a return to ‘crawling up a wall of worry’.

The old sayings are the best.

Good Trading
Steve Peasley

Post a Comment