I am not familiar with Lindsay Technical Analysis, but on an intraday basis, the DOW eclipsed the July 3 high this morning. If it closes higher than that high today, does it mean that this time frame for a market top (July 20) has “expired,” just as the others have done? The answer really doesn’t matter to me. I was just curious.
The fundamental fact of this matter is that the market is moving up because there are two overriding reasons for it to move up – positive economic data and positive earnings. True, the market is still a bit ahead of itself, but, if earnings continue to do well and the market retraces here and there, the imbalance will be corrected over time.
- U.S. stocks are rising Wednesday on second-quarter earnings reports and deal news. Investors are also keeping an eye on Federal Reserve Chair Janet Yellen, who is testifying to Congress for a second day.
So far today, this is true. Intel’s positive earnings report and upped guidance is a good sign for technology and the proposed deals coming out today signal the mergers and acquisitions train is still going forward fast. Companies are setting up for the next phase of economic growth, positioning themselves for revenue generation and higher profits.
Speaking of Intel, it appears that company has turned things around. It has now become an integral part of the next phase of the Internet evolution. PCs are fading fast, but the Cloud and the Internet of Things are ramping up and Intel is right there.
- Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things.
The market is still in the green, but some “news” from Janet Yellen’s visit to Congress today could change that quickly. Certainly, her comments about overvaluations in the market sent the Russell 2000 reeling. Today, it is off but a fraction of what it fell yesterday.
- Right now it looks like Small Caps are one of the ugliest pigs in the pin.
I agree, Janet Yellen or not. Right now money is going into known names. My point is that until the market becomes settled with itself, investors will take less risk and stay with the known names.
Moving away from the market, here is a bit of information that I found this morning that could spell opportunity. The question is: who mines this material?
- California-based Alphabet Energy plans to begin selling a new type of material that can turn heat into electricity. Unlike previous thermoelectrics, as such materials are known, it is abundant, cheap, and nontoxic.
- Alphabet Energy’s solution is tetrahedrite: an abundant, naturally occurring mineral that also happens to be more efficient on average than existing thermoelectric materials.
- According to data released by Alphabet Energy, tetrahedrite costs about $4 per kilogram, whereas other thermoelectric materials cost between $24 and $146 per kilogram.
Gotta get on the road to home, so, until tomorrow, have a good market day.
Trade in the day; invest in your life …
