The low volume continued today despite fears Europe will not be able to come together to solve its debt crisis. Insitutions were mainly on the sidelines today, but the price destruction was quite clear. Economic news didn’t help the situation as the Empire Manufacturing index put up a reading of -8 worse than expected. Sellers were able to gain the upper hand, but were unable to show any strength. The upside move from the October lows lacked thrust and it appears so far the downside will be much of the same.
In after-hours IBM and VMW stock took on some serious hits. VMW stock was down nearly 2% when after-hours completed as the stock disappointed the street with its earnings release. VMW has been a leading stock, but over the last few months has had some troubles. IBM is another stallwort and big chip name. IBM’s revenues were on the light side sending the stock lower by almost 4%. It too had a disappointing report. Fears over global growth hit both stocks and is likely to spread.
Tomorrow we’ll get AAPL’s earnings report. More than four million iPhone 4s were sold over the weekend. A tremendous accomplishment on the heals of Steve Jobs’ death. The stock hit an all time high today and pull back to close near its lows of the day. The stock fell in the after-hours session as well, but it will be anyone’s guess on how it will react to its earnings report. The stock will certainly move markets tomorrow, keep a close eye on the stock as it moves tomorrow.
It is quite interesting seeing commentary from other traders and market pundits. Over at seekingalpha its stock talks are filled with traders buying every dip imaginable. This is not how to invest and trade in the stock market. If a position is showing you a loss you don’t add to it! A cardinal sin in trend following. It is not how to invest in the stock market! The stock market is a tough place to be and you do not want to make it even more difficult by practicing techniques that are guaranteed to lose you money. Stick with Big Wave Trading.
Tomorrow will bring on another great day and we are looking forward to taking advantage of whatever the market will bring us.
