Runaway NASDAQ? – October 18, 2010
The well received EPS report from Google (GOOG) was enough fuel to propel the NASDAQ market to another strong day and high. Apple (AAPL) continued its climb as well as AAPL closed up $12 on the day and $20 for the week. GOOG exploded Friday to close up $60 or 11% for the day. The ETF for the NDX or NASDAQ 100 Index, QQQQ closed at 51.49 a new high for 2010. After such a powerful move a brief pullback could be expected but the momentum has clearly stayed to the upside.
The other side of the coin focuses on the bank stocks which were weaker amid worries after J.P. Morgan reported EPS. JPM is an important money center bank and closed down 5% for the week. The ongoing comments from Fed Chairman Bernanke and the weakness and banks stocks can continue to serve as an anchor on this market. The equity indexes have risen in anticipation of the QE2 or the second major round of quantitative easing which we believe will be discussed more heavily after the early November elections and FOMC meeting. While this liquidity infusion and lack of any competitive short term interest yielding investments may boost the short term market, we continue to be cautious overall.
Past performance not indicative of future results. Futures trading involves substantial financial risk. Please consult your personal financial advisor before using this information for your own trading purposes.
