Why This Week Will Be Telling
Market
Trend: Topping
Market Outlook: Bearish
Sector Watch: UP — Broad markets,
DOWN — Pharmaceuticals, Healthcare, Telecom
Peter’s Pick: GIGM
The Broad Market Outlook:
All three major indices finished the week in the
green, continuing their upward bias. We enter this week with
a bunch of earnings from the likes of such market leaders as: Intel, EBay, B
of A, Motorola, IBM, EMC, Caterpillar, AMD, and others. Add to this some very
important economic data which includes: Retail Sales, Housing Starts/Permits,
Capacity Utilization, and more. Top it off with options expiration on Friday,
and we are in for an interesting and telling week.
This week could be “short
and sweet, and very poignant.†Any astute technician and market analyst
knows that when things look too good to be true, they sometimes are! Cases in
point are companies that appeared to be technically bullish, and fundamental
darlings to Wall Street — major
companies in the past like: Tenet Healthcare, Phillip Morris, Proctor &
Gamble, Unisys, Raytheon, Boeing, just to name a few.
But, what seemed so right
seemed so right one afternoon, turned sour by the next morning, worsening in
the weeks to follow. That’s how quickly price adjusts to reality! Yes,
we are bearish for the many reasons that we have brought forth in previous columns.
You should at least be cautious,
Peter’s
Pick: Gigamedia
(
GIGM |
Quote |
Chart |
News |
PowerRating)
A high-risk speculation. It’s a Taiwan broadband Internet provider that
also distributes music on the island. I loaded up on Friday looking for another
IIJI. We’ll see. The chart pattern can be viewed as a “cup with
handle†ready to rock. Good technicals. Fundamentals suspect.
If you have a favorite macroplay or stock you would
like us to consider in this column, send an e-mail to peter@peternavarro.com
or go directly to https://www.peternavarro.com. We’d love to hear from
you.