Friday, 23 October 2015

Samurai Summary: Top Tweets 23/10/2015

Reality is setting in for most S&P 500 companies as a handful missed revenue and earnings forecasts sending quivers down the spine of investors. I find this article on the Economist highlight the stagnate situation most of the top companies are finding themselves in. They mention Walmart and IBM both reported bad numbers despite engaging in share buyback programs.
I don't think this is surprising if you consider that oil prices have fallen hard over the last year. There was always going to be stiff competition between shale producers and OPEC with these write downs as a result. Where it goes to from here ? Well I think US producers have began to tap off wells which definitely depletes some of the world supply but it's not enough to see anything steadfast.  
After Super Mario opened the door of possibility to an increase in stimulus in the eurozone, participants took to markets to show their appreciation of the campaign sending indices higher within a whisker of all time highs. The market also interpreted good earnings from McDonald's as a sign that the economy in the US may not be as weak as expected.

We are heading into the last few weeks until year end and we'll need to build a strong base for the bulls to work off if we are going to see a rally into the festive season. Although the week has been relatively weak yesterday's performance does ring a few bells in terms of key technical levels that need to be broken to confirm a break of the downtrend.  
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