Calendar opportunities Week of October 21
There has been a lack of Government data due to the partial shutdown so economic data will be intensely scrutinized, then out of hand dismissed as being inaccurate or irrelevant depending on the old Wall Street axiom, how can you ‘screw the most people, most of the time’. After the recent run-up earnings disappointments might offer more pin action than surprises.
Earnings season kicks off for real Monday. This is always a sketchy time for nervous longs. Follow us on Twitter @saxangle.com for the latest moves we might make.
Monday October 21st Maybe we are obsessing with this news but still don’t understand why this isn’t bigger news with the financial media in light of Google’s massive point surge Friday. On the news that the capacitive multi touch “Jobs patents had been upheld by the USPO, “This outcome is a major strategic win for Apple, a massive setback for Samsung and Google, and a potential threat to other Android device makers,” wrote Foss Patents, which originally identified the reaffirmed patents.
Existing home sales will be closely watched as one of the real bright spots in the economy has been housing.
Barron’s favorable article combined with the $4.7 billion transaction will AT&T shareholders a lift. We were a bit lucky picking up a bit of it Thursday and Friday based on our technical indicators and basically agree with the Barron’s article. NVR, a large and well respected homebuilder reports before the open Monday. The chart looks good and this stock could have a nice lift. We would have bought it for the earnings as there is insider buying as well but already have a large underwater position in Pulte Group (PHM). The homebuilders alls seem to act the same so hopefully our PHM position can get a lift.
Tuesday October 22nd The all important nonfarm payrolls that was supposed to be released Friday will be released Tuesday morning before the market opens. It will be interesting to see how fast the market starts obsessing about the “tapering”. I expect sooner than later and fear the recent recovery in interest rate sensitive sectors might suffer a setback. On the other hand a weak number here, could seal the fate of tapering this year as most economists now expect.
Even though we are in the thick of earnings announcement, Apple’s product announcement will still take center stage Tuesday. My guess is that it’s the release of the new OS and retina screen mini-iPad models. Probably a yawner compared to the bigger news of the USPO revalidation of the “Jobs” patents.
Wednesday October 23rd Housing price index is projected to rise just .08% Netflix reports after the close. We don’t own this high flyer but I would guess it’s a sell not a buy. We
Thursday October 24th New home sales will be closely watched. Housing has been a big leg of this rally and it continues to provide a lot of the animal spirits in a lackluster job market.
Friday October 25th Durable goods and Michigan consumer sentiment will provide some insight into the underlying strength of the economy.