U.S. stocks climbed Monday after data showed activity in the U.S. manufacturing sector rose to the highest level in four month with a 51.5 reading. The next big report coming out this week is the non farm payroll report on Friday!
The ISM report today easily surpassed Wall Street expectations: Economists
surveyed by MarketWatch had forecast the index to remain under 50 for
the fourth straight month, at 49.7.
Great result showing that the enterprise are doing better than expected. Great news! That is the reason why Dow Jones at one point rallied around 150 points at one point. By mid day it falls back to 100 points.
However, tech stocks in US took a beating today after the wonderful ISM reading. Apple and Microsoft leads the tech sector down as Microsoft was downgraded by an analyst.
I have a friend who asked me whether to buy Apple. I have to said that there are a lot of selling pressure on this stock now that the iphone 5 hype is over. There is a big resistance at 680. So before it comes back to this figure, I would suggest to stay away from this stock before its earnings.
It is better to focus on Google whom is trying to break new high soon...
And this time round, there is a big chance that Apple's earnings might fall below expectations. So it would be wise to sell away the stock before its a earnings. Do not take any risks. In fact, I always suggest all short term players to sell away your stock before earnings. Not only Apple.
Although I still feel the market will be bullish overall until the end of the year, I suggest cautiousness in picking the right stock as not all the stocks are bullish.