Wednesday, July 15, 2009

Stocks rise on earnings reports

Stocks in New York rose sharply after Intel reported stronger than expected earnings. The Dow closed up 3% and closed at 8616 while the S&P ended trading at 932. The rally got started in Asia as Mumbai also bounced off last week's lows as the Nifty closed at 4233. So much for the much-ballyhooed head-and-shoulders pattern that was portending lower prices. Markets have broken above the "neckline" at Dow 8550 and are rapidly approaching their June highs.

This uptrend is largely in keeping with our weekly outlook given the Sun-Mercury conjunction and the Mercury-Jupiter aspect, although I admit it's somewhat stronger than I expected. I still see a good chance some substantial profit taking for tomorrow and especially Friday on the Mercury-Ketu conjunction, although it seems that we will finish higher on the week.