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Big Earnings Results But Markets Stall

Published 01/22/2013, 10:23 PM
Updated 07/09/2023, 06:31 AM

The markets saw monster earnings results from companies like International Business Machines Corp. (IBM) and Google Inc (GOOG). In addition, mid-size companies Cree, Inc. (CREE) and Intuitive Surgical, Inc. (ISRG) are both soaring on their quarterly results. Overall, fourth quarter earnings have been solid. While the markets have been moving higher of late, today the they remain flat. This should be worrisome to investors after such solid reports.

Reasons To Be Cautious

1. The markets have made new 52-week highs in recent days, thus are extremely extended.

2. The unemployment rate remains north of 7.5% and the economy still can barely add jobs.

3. Great earnings should be shooting this market dramatically higher, yet no upside is seen.

4. Markets have rallied on extremely light volume. This light volume is attributed to the small investor, coming into the market again. The retail investor always buys the market tops.

5. Apple Inc. (AAPL) reports today. This one report could sway the markets dramatically.

The key to the next move is always shown in the charts. The question is, will you see it ahead of time? The markets are starting to show weakness while the retail investor piles in.
SPY

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