Monday 15 October 2012

JP Morgan and Wells Fargo disappoints Wallstreet on Friday

Dear Friends,

Like what we have mentioned in our last article, US market has not shown signs of confidence coming back yet. We also mentioned on Thursday not to be caught up with the good financial sector performance yet and wait for the earnings of JP Morgan and Wells Fargo before judging whether finance sector is good. See our last article:

Indeed, on Friday, JP Morgan and Wells Fargo seems to disappoints Wall Street with its earnings results.

"Wells Fargo suffered as its 8.1% growth in revenue, to $21.21 billion, came in below analysts’ consensus view of $21.47 billion, according to Thomson Reuters. Per-share earnings, reflecting the payment of preferred dividends, were 88 cents a share, ahead of the expected 87 cents a share. "

This week, there will be more financial companies announcing their reports, like Goldman Sachs and Citigroup. Hope they can turn around the tide for the financial sector, a big sector that will affect the US market.

On Thursday, Google, the big tech company might rock Wallstreet with its earnings announcement after market closes. After a run-up of $200 in 3 months to a all time high of $775, I would probably anticipate a GAP-DOWN of this stock. Even a slight positive beat of this stock might lead to a gap down as expectations are extremely high. If I have any bullish tech sector positions, I will liquidate all going into Friday session. But of course, I also do not encourage anybody to short this stock before earnings as playing through earnings involves RISK. And I encourage all short term traders not to do that!

Singapore market has also been volatile recently. In fact from the remisiers, I heard that those who have invested these 2 weeks have not been making $$$. One tip for you if you want to know market sentiment is to ask constantly how the remisiers' clients are doing recently. They reflect the market now. "Most are stuck!", they said. This is a sign that Singapore is like US now. Not that easy to trade recently. Like what we have been mentioning, let us wait for a better performance form US market first before we go in to catch the reversal.

Another tip: If next time, your remisiers tell you people are panicking and no body is buying, the market is hinting reversal is near!

Remember, timing is everything in trading! If you are a part time investor, bear in mind that each year, there are on average only 4-6 BIG Bull runs. The last 2-3 weeks since QE3 announcement is probably not one of the bull runs!



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