Big Earnings Results But Markets Stall

The markets saw monster earnings results from companies like International Business Machines Corp. (NYSE:IBM) and Google Inc (NASDAQ:GOOG). In addition, mid size companies Cree, Inc. (NASDAQ:CREE) and Intuitive Surgical, Inc. (NASDAQ: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. (NASDAQ: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.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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