How low can it go?
A lot of mixed news out of the US last week which saw some volatility in the market. But the Bears won in the end with the market falling 3.5% from its highest point for the week. Keep in mind that the end of the financial year was last Tuesday, there is always a bit of “window dress” around this time of year.
My focus however is on the reporting season coming up. No doubt there will be some surprises both ways, but what is more important is the trend. I expect this reporting season will see in general more surprises to the up side. Most companies have taken drastic measures early to curb spending, reduce debt and improve their cash flow. This should mean better results then expected.
In the coming weeks I expect to see the market remain cautious, I would also expect to see stock oversold on bad news and over brought on good news. This will provide opportunities for traders and those looking to add quality stocks to their portfolio.
We will be looking for all opportunities and bring any we find to you.