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Stocks on Brink Of Breakout [Gentlemen, Start Your Engines?]
NYTimes ^ | July 25th, 2010

Posted on 07/25/2010 9:30:06 AM PDT by Steelfish

Stocks on Brink Of Breakout By REUTERS July 25, 2010

NEW YORK (Reuters) - Wall Street enters this week on the cusp of a breakout in U.S. stocks, but it will need another spate of convincing earnings reports to feed the rally that sprouted at the end of last week.

The markets endured malaise with poor economic data and downbeat testimony from Federal Reserve Chairman Ben Bernanke on Wednesday, but turned decisively after a number of strong results pointed to better times ahead.

This week brings more results from bellwethers including Chevron, DuPont and Boeing. The trick will be turning the whipsaw action into accumulated gains -- and hoped-for improvements in volume -- that would signal an upturn in sentiment.

"There's a constant struggle between the bulls and the bears when in fact the answer is in the middle ground. This market is more like a turkey and not a bull or a bear," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Fund Management in Menomonee Falls, Wisconsin.

Investors have been forced to readjust their expectations for the economy, with data showing the pace of the recovery has gone from a sprint to a crawl.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:
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1 posted on 07/25/2010 9:30:08 AM PDT by Steelfish
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To: Steelfish

When folks start talking about a “breakout,” that’s usually when the market collapses.


2 posted on 07/25/2010 9:32:54 AM PDT by Brilliant
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To: Steelfish
Tell me just before it peaks next time will you please.
3 posted on 07/25/2010 9:34:20 AM PDT by kbennkc (For those who have fought for it freedom has a flavor the protected will never know .F Trp 8th Cav)
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To: Brilliant

Why is this guy pimping NY Times propaganda stories? There is no economy. No businesses are hiring. I talked to a guy and he said semiconductor business is good because of phones and portable devices but that is it.


4 posted on 07/25/2010 9:34:49 AM PDT by Frantzie (Democrats = Party of I*lam)
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To: Steelfish
Other than the guys who can manipulate billions of dollars worth of stock with a keystroke, what would people invest in?

How could this idiot of a paper print this crap as though everything from here on in is going to be

GRRRRREAT!

5 posted on 07/25/2010 9:34:54 AM PDT by raybbr (Someone who invades another country is NOT an immigrant - illegal or otherwise.)
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To: Steelfish
Investors have been forced to readjust their expectations for the economy, with data showing the pace of the recovery has gone from a sprint to a crawl.

When the data spells trouble, don't adjust the stock price, just adjust your expectations.

6 posted on 07/25/2010 9:36:16 AM PDT by paul51 (11 September 2001 - Never forget)
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To: Steelfish

Given that this propaganda came from the NY Times, I’d be wary of buying anything right now. Most Wall Street traders are NOT meeting the their numbers so far this year so be very careful.


7 posted on 07/25/2010 9:36:21 AM PDT by jimbo123
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To: Steelfish
The stock market is a collection of people who earn their bread investing and trading other people's money. They make the market go up and down based on their fear of loosing their bonuses and their greed of missing a run up. The stock market is a very poor indicator of general economic conditions so whether it goes up or down, the US economy is still in the tank. People are unemployed. Houses are under water and business stinks... If the market goes up, sell into the rally. If it falls, who cares?
8 posted on 07/25/2010 9:39:11 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: Steelfish

” Stocks on Brink Of Breakout “

This will sure come as a great comfort to the twenty-some-percent of us who are either drawing unemployment, or are ‘lucky’ enough to be pulling down subsistence wages...

Thanks, Obama and Dems...


9 posted on 07/25/2010 9:40:10 AM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: kbennkc

It is not that hard if you know what to look for.


10 posted on 07/25/2010 9:40:47 AM PDT by Frantzie (Democrats = Party of I*lam)
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To: Uncle Ike

Blame idiots who watch TV. The 5 TV networks own 95% of cable channels and they all support him. The NFL, MBL, NBA, NCAA, ESPN and other idiot entertainment supports him 100%.


11 posted on 07/25/2010 9:42:04 AM PDT by Frantzie (Democrats = Party of I*lam)
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To: Steelfish
Sometimes, “buy” means “sell”.
12 posted on 07/25/2010 9:42:12 AM PDT by BenLurkin (Will must be the harder, courage the bolder, spirit must be the more, as our might lessens.)
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To: Brilliant
When folks start talking about a “breakout,” that’s usually when the market collapses.

The Liberals at the NY Times trying to boost optimism.
Nothing Obama has done will be good for the market. Nothing will be good for employment.

Everyone knows that the government lies about the real unemployment statistics, by not counting anyone who is unemployed for more than six months as unemployed, and by counting temporary census jobs two or three times - an Obama innovation.

I stop counting somebody as unemployed when they find a job.

The real measure that we should look at is labor force participation, which has not been tampered with too much, although they still count these worthless government and census jobs... which paper over a bit of the reality.

Labor Force Participation - the real employment/unemployment statistic is at its second lowest level in history. Both times happened under Obama.


13 posted on 07/25/2010 9:43:30 AM PDT by Bon mots ("Anything you say, can and will be construed as racist...")
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To: Steelfish
We have to SAVE Obama!
14 posted on 07/25/2010 9:43:42 AM PDT by E. Pluribus Unum ("The only stable state is the one in which all men are equal before the law." -- Aristotle)
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To: Steelfish
I'm just hoping for a momentary collapse in GLD and SLV so I can use the profits I made shorting solar and wind companies to make a killing on gold and silver after Mr. Soros' Puppet King kills the dollar.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

15 posted on 07/25/2010 9:44:39 AM PDT by The Comedian (Evil can only succeed if good men don't point at it and laugh.)
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To: Frantzie
It is not that hard if you know what to look for.


16 posted on 07/25/2010 9:44:55 AM PDT by Errant
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To: Steelfish

ROTFLMAO!

The Stock Market will be under 5000 by Halloween.


17 posted on 07/25/2010 9:45:43 AM PDT by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
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To: Steelfish

The boom before the bust. Customer confidence in the economy does not justify this expectation. Unless it’s just investors goosing up each other waiting for the suckers to take the bait.


18 posted on 07/25/2010 9:46:18 AM PDT by ex-snook ("Above all things, truth beareth away the victory")
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To: Steelfish

QE2 coming? Bet cha so.


19 posted on 07/25/2010 9:46:48 AM PDT by OpusatFR
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To: Uncle Ike

RATs,
they think that lying it up will fool people in voting for them.


20 posted on 07/25/2010 9:46:49 AM PDT by Leo Carpathian (fffffFRrrreeeeepppeeee-ssed!)
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To: April Lexington

Your description is of the stock market corca the mid 1990s before glass stegall was repealed and before hedge funds had carte blanche. Today it is all hedge funds, high frequency trading computer programs and endless forms of manipulation.


21 posted on 07/25/2010 9:49:31 AM PDT by Frantzie (Democrats = Party of I*lam)
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To: Steelfish

Ah yes, the weekly Monday pump up for the weekly Friday dump off.


22 posted on 07/25/2010 9:50:28 AM PDT by Wolfie
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To: Frantzie

It’s certainly no longer a means of connecting capital to sound businesses. It’s a casino, run by, and for, insiders.


23 posted on 07/25/2010 9:52:14 AM PDT by Wolfie
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To: blam

ping


24 posted on 07/25/2010 9:54:47 AM PDT by upchuck (Our margin of victory this November MUST BE greater than their margin of fraud.)
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To: Wolfie

Bull.. We will put whatever money we have left in the market to chase after our losses, then they will crash the market again.


25 posted on 07/25/2010 9:55:08 AM PDT by EQAndyBuzz (Helter Skelter. The Revolution is Upon Us.)
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To: Frantzie
Good point. But... think of the poor saps who earn their living on fees from managing money. The volatility is making it difficult to generate consistent returns on managed money. Firings of money managers is picking up steam in some quarters as the “money” searches for just the right Wizard of Oz who will get them the 8% they were promised when they opened their accounts...
26 posted on 07/25/2010 9:57:16 AM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: Steelfish

The threat of TAX increases are keeping this economy in peril. IMHO


27 posted on 07/25/2010 9:58:07 AM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: Frantzie
You nailed it. And what a shame.

IMHO, real financial market reform would be to let the little guys like you and me have a chance again. Like it was pre 2000.

28 posted on 07/25/2010 9:59:07 AM PDT by upchuck (Our margin of victory this November MUST BE greater than their margin of fraud.)
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To: Don Corleone

Tax increases coupled with selective enforcement and complete rejection of contracts and the rule of law...


29 posted on 07/25/2010 9:59:26 AM PDT by livius
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To: Steelfish
These days, there's no rhyme nor reason to the fluctuation of the stock market. There certainly has been no correlation to economic realities.

I had hoped to buy back in just prior to November, thinking that the economy would improve if one or both houses of congress were captured by the Repubs.

On the other hand, if Bush's tax cuts are allowed to expire in January, the economy is going to tank.

Uncertainty is a powerful weapon if you're trying to destroy the economy.

30 posted on 07/25/2010 9:59:29 AM PDT by Washi
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To: Steelfish

Let me know when housing recovers which is the engine of the economy.

Pray for America


31 posted on 07/25/2010 9:59:29 AM PDT by bray (Did Rush say Absolute Failure?)
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To: Frantzie
Blame idiots who watch TV. The 5 TV networks own 95% of cable channels and they all support him. The NFL, MBL, NBA, NCAA, ESPN and other idiot entertainment supports him 100%.

Well said.

32 posted on 07/25/2010 9:59:41 AM PDT by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: Steelfish

No jobs, people who have jobs in fear of losing them, housing market in the toilet and about to be flushed, consumer confidence at a new low, and in an economy 2/3 driven by consumer spending with consumers NOT SPENDING, just WHO will be spending the money necessary to keep earnings up?

Companies have increased profits through cost cutting (layoffs) and increased production (again fewer employees doing more work), and have seen all of that they can see. Any further growth has to come from consumer spending and I’m not seeing any of that.

Let’s not confuse the stock market with the economy. Unless and until consumers resume spending we are going nowhere. Companies are today sitting on 1.8 TRILLION in cash. They are doing so because of uncertainty and uncertainty is what the markets hate the most.

Anyone here disagree?


33 posted on 07/25/2010 10:00:02 AM PDT by 101voodoo
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To: Frantzie
It is not that hard if you know what to look for.

If I knew what to look for , I wouldn't tell anybody for free either.

34 posted on 07/25/2010 10:05:37 AM PDT by kbennkc (For those who have fought for it freedom has a flavor the protected will never know .F Trp 8th Cav)
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To: Steelfish

++++ . If it falls, who cares? +++++

How about govt. pensions? Guess who’s “invested” in the market?...and has a driving interest in saving their own, while the rest go unemployed or are taxed into nothingness?


35 posted on 07/25/2010 10:07:19 AM PDT by Varsity Flight
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To: DCPatriot
Do you mean the Dow Jones Industrial Average?

One year --

Five years --

36 posted on 07/25/2010 10:07:58 AM PDT by BenLurkin (Will must be the harder, courage the bolder, spirit must be the more, as our might lessens.)
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To: April Lexington

++++ . If it falls, who cares? +++++

How about govt. pensions? Guess who’s invested in the market?...and has a driving interest in saving their own, while the rest go unemployed or are taxed into nothingness?


37 posted on 07/25/2010 10:11:54 AM PDT by Varsity Flight
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To: Steelfish
"the pace of the recovery has gone from a sprint to a crawl."

Sprint? LOLOLOLOLOL.

38 posted on 07/25/2010 10:17:25 AM PDT by Psycho_Bunny (Hail To The Fail-In-Chief)
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To: Frantzie
"I talked to a guy and he said semiconductor business is good because of phones and portable devices but that is it.

Yeah...and Applied Materials just quit out of the silar cell equipment manufacturing sector...loss of 500 jobs...

Hows that hope and change for green jpbs going.

From AMAT press release:

While Applied has delivered significant innovations with our SunFab production line and made substantial progress on our technology roadmap, the thin film market has been negatively impacted by several factors, including delays in utility-scale solar adoption, solar panel manufacturers’ challenges in obtaining affordable capital, changes and uncertainty in government renewable energy policies, and competitive pressure from crystalline silicon technologies,” said Mike Splinter, chairman and CEO of Applied Materials. “Led by Mark Pinto, EES will focus on our industry-leading crystalline silicon solar business and on pursuing other opportunities in advanced energy technologies like LED lighting.”

The company also plans to divest its low-emissivity architectural glass coating products, while continuing development activities in emerging technologies such as “smart” electrochromic glass.

The cost of implementing the EES restructuring plan is expected to be in the range of approximately $375 million to $425 million, or $0.18 to $0.21 per share, which will be reported as cost of products sold and restructuring and asset impairments in the company’s consolidated statements of operations for the third quarter of fiscal 2010. As part of the total pre-tax cost, Applied anticipates that it will record: (i) inventory charges of up to $240 million; (ii) equipment and intangible assets impairment charges of up to $95 million; (iii) employee severance of up to $50 million; and (iv) other obligations of up to $40 million. This action is expected to impact between 400 to 500 positions globally. A number of affected employees may transfer to other groups or functions within the company. Cash expenditures related to these charges are expected to be no more than $80 million. In addition to the charges under the EES plan, the company will record a favorable adjustment of approximately $20 million to the restructuring plan previously announced on November 11, 2009 due to changes in business requirements.

39 posted on 07/25/2010 10:18:46 AM PDT by spokeshave (mess + 0bama = quagmire recession)
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To: DCPatriot

I’m with you. The uncertainty prior to the election will be driving it. As the polls lead up to Nov. 2, however, things should get interesting-!


40 posted on 07/25/2010 10:27:56 AM PDT by imjimbo (The constitution SHOULD be our "gun permit")
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To: Steelfish

A sucker rally. And even if there was an economic uptick, the Regime will find a way to throw a wrench in the works. Everyone must be miserable except the Elites (in this case the upper levels of the Nomenklatura, does not apply to those who really earned it).


41 posted on 07/25/2010 10:28:07 AM PDT by Fred Hayek (FUBO! I salute you with the soles of my shoes!)
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To: Steelfish

There was a memorable article in the NYT about 3 months ago about how the economy was “ready to roar.” LMAO!


42 posted on 07/25/2010 10:30:01 AM PDT by nhwingut (Palin/Bachmann '12)
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To: Wolfie

I’m certain you’ve heard the belief the stock market is a forecaster of the over all economy six months out. That belief has been destroyed the past couple of years.

Since technicals and fundamentals don’t seem to apply anymore, I think your right. The stock market does seem like a casino....but controlled by whom?


43 posted on 07/25/2010 10:33:20 AM PDT by Rational Thought
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To: Steelfish
Great... someone(s) telling us a breakout is about to commence... good, let them invest their own money.

A monkey would have a better record at stock picking than these "anal-ysts."

44 posted on 07/25/2010 10:36:03 AM PDT by Trajan88 (www.bullittclub.com)
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To: Steelfish

I ask my nephew how he avoided losing his ass when the teck bubble exploded. He said when he was in New york and a cab driver stated giving him investment advice, he went home and converted his stock to cash. He was head of the foreign exchange section of a major, major bank.


45 posted on 07/25/2010 10:37:06 AM PDT by org.whodat
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To: Wolfie

Sorry...”your” should read “you’re”.....


46 posted on 07/25/2010 10:41:14 AM PDT by Rational Thought
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To: Steelfish
I can't even read the article I am sorry.

Earnings Per Share are up above estimates, but most companies revenues suck in plain english. That means the level of economic activity is still sickly.

Now the headwinds of the following face the markets:

Obamacare, The sunset of the Bush tax cuts and within raising the Capital Gains rate from 15 to 20% and Raising the Dividend Rate to 39.6%

So tell me how potentially smart money won't be looking for the exit door (non qualified money) before 12/31/2010 given these Obama headwinds to their capital?

47 posted on 07/25/2010 10:41:43 AM PDT by taildragger ((Palin / Mulally 2012 ))
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To: 101voodoo

No, see post 47....


48 posted on 07/25/2010 10:43:29 AM PDT by taildragger ((Palin / Mulally 2012 ))
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To: Frantzie
I have been tracking 40 Bank/FI stocks - haven't bought any, but the volatility is amazing the stocks would lose 4% one day make 2% the next.
49 posted on 07/25/2010 10:45:05 AM PDT by Perdogg (Nancy Pelosi did more damage to America on 03/21 than Al Qaeda did on 09/11)
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To: Steelfish
"Stocks on Brink of Breakout......"

Obama makes me breakout.....in boils, like Job.

The plague and locusts are right around the corner.

Looking forward to deliverance in November.

Leni

50 posted on 07/25/2010 10:46:08 AM PDT by MinuteGal
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