3 Earnings Stocks to Watch
With most people’s attention focused on the never-ending fiscal cliff debate in Washington or the Christmas holidays just around the corner, it’s easy to miss earnings announcements this week. MoneyShow’s Tom Aspray takes a technical look at the three most interesting stocks in this group.
The lower close Friday did not suggest very heavy selling and that makes the action early in the week quite important. A day of heavier selling would not be surprising, but it will take several days of stronger selling to suggest that this is more than a correction in an uptrend. There was good support for the Spyder Trust (SPY) at $140.40-$140.80.
Even though stocks have rallied from the mid-November lows, money continues to move out of equities. In the week ending December 5, another $7.16 billion came out of equity funds according to the Investment Company Institute. This was much worse than the $627 million the prior week, but was still below the $8.81 billion that came out the week after the election.
While the threat of the fiscal cliff continues to dampen stocks prices over the short-term, moving into 2013 I expect more positive developments. As I discussed in last Friday’s Week Ahead column Stuff Those Stockings with Stocks, the investing public is under invested in the stock market. Historically, the public has often jumped into the stock market when it was closer to a market high than a market low.
Therefore, further weakness is likely to be a good buying opportunity.