A Look at the Week Ahead...
With 25% of the S&P 500 companies reporting Q2 earning next week it will likely make for a very volatile week in the stock market. It's not so much the movement of the actual Q2 results, yes they do play a role in market direction, but they are mostly priced in. The bigger factor is the changes in Q3 guidance. If most companies' Q3 forecasts are lowered (and by how much) will really be the big downward driver next week. If on the other hand guidance is raised or even maintained the market should react favorably to the upside.
Here's a short list of big names reporting next week: IBM, Microsoft, AT&T, Coca-Cola, American Express, Apple, Wells Fargo, Ford Motor, and UPS.
We'll want to keep our eyes on the Williams %R on the S&P500 to flash oversold (below -80) for good opportunities to sell out-of-the-money Puts when the market is down and/or pushing down against the most recent support level or 1020.
Steady on the trigger boys!
Bear vs Bull image by: Paul Antonson at invisibleman