S&P 500 ETF- SPY Weekly Trade Analysis (10-31-10)

Technically Speaking…

From a technical standpoint, we are still in a strong bullish move. The RSI is hovering at 64.72 and showing no signs of slowing down. The MACD supports this with strong bullish signs that are just moving right along.

Over the last 5 weeks, volume is slightly down, but barely. Not enough to warrant any change of direction as of yet. And the stock is still moving above the middle Bollinger Bands. All these signs show strength for the SPY. This week we slowed a bit and look as if we are doing some consolidating, but from a technical view, we are not showing any signs of turning bearish yet.

So where are we headed now?

Supposedly this next week may be significant in market direction. With the Feds going in and buying possibly a trillion dollars in assets, that announcement will come early in the week. November is usually good, the third year of the Presidential four year cycle, has historically offered the best returns for market investors.

We have three very important earnings reports as explained by an article written at (Whispernumber.com)to also consider as influencing the market’s movement. Baker Hughes (BHI) is expected to report earnings on November 1st, before market open. While the track record of beating the whisper number is only 50/50, and the whisper number is two cents ahead of the analysts estimate (making it that much more difficult to exceed), the expected price reaction is very strong.

Mastercard (MA) is expected to report earnings on November 2nd, before market open. The track record of beating the whisper is strong, but the whisper number will be tough to overcome, and the expected price reaction is very strong.

Fluor Corp. (FLR) is expected to report earnings on November 4th, after market close. The whisper number is $0.40, nine cents above the analysts estimates. While the expected price reaction is very strong, and the track record of beating the whisper is strong, the whisper number may be difficult to overcome.

But there is one significant caveat required here – these companies also react with strong negative price movement when they miss the whisper number. In other words look out below if they fall short of the whisper number expectations. These are just three of 15 earnings reports to consider influencing the market this week.

Technical analysis & stockand option trades are available at EmpoweredInvestingNow.com