Apr 16, 2012
Update: (10:15AM EDT)
Time for me to brag a bit, guys Didn’t I say on Saturday last that the Apple (Nasdaq: AAPL) bubble is going to burst now? Heh, heh, check this out, AAPL is down by 2.27% in early trade!
Related Post: Is Apple bubble going to burst now?
And, oh, didn’t I write before markets opened, not to be too happy about a gap up opening today? See what markets have done, exactly what I had said they might do !:)
Earlier: (9:02AM EDT)
For those, who are happy to see U.S. stock futures jump sky high on March retail sales data; here I come with a bitter herb to spoil your broth
Don’t be fooled by today’s big gap up opening in U.S. markets which just might hit a wall ahead.
To understand it, see this Dow Jones chart:
-U.S. markets have developed a small range; that’s why we are currently witnessing the “up one day- down the next- up next again” kind of trading sessions. Please remember, this range is towards the lower side of another, bigger range.
For Dow Jones , this smaller range is between- 13000- 12,700.
For Nasdaq: 3000- 3050
For S&P 500: 1388- 1360
So, till Dow Jones breaks above 13,000 level and STAYS above it, expect markets to keep bouncing off the roof and floor of this new range.
That is why, today’s gap up opening might not give markets any room to barge ahead and they just might turn lower or turn volatile, going up and down, trading in a small range, frustrating both bulls and bears.
Oh, and to just reiterate why U.S. markets are going to see a gap up opening today- March retail sales numbers have come and show a marginal increase ( 0.08%). Although the manufacturing activity in New York has fallen drastically.( Please keep in mind this fact as well, which is going to induce some volatility in markets later.)
Citigroup has posted disappointing revenues; might have negative effect on banking sector’s trading today.
Overall, expect a gap up opening and volatile trading in U.S. markets today.