USA stocks come charging out from the gates the other day and have yet to look back. There was a 1.8% increase for NASDAQ. Dow rallied around 400 points and drove higher by the Federal Reserve reassurances; it will not raise interest rates imminently. The S&P 500 reported a huge jump in nearly 2 years as tech shares made a gain after the much expected Oracle business software results. There is more optimism for 2015 although still inside the resistance gravitational pull zone at 2050. Also, we are a bit under the December 29th record highs.
Last Monday started the earnings season. Right after the bell, limping out of the gate was Alcoa and Wells Fargo, JPMorgan and Goldman Sachs all reported their imaginary earnings. Come last Thursday, things began to get really serious with Lennar, Intel and Schlumberger.
The news is not the question here, but rather how Wall Street will decide to take it. There was a huge run for Intel with them being up 45% in the past year. It is not considered ‘cheap’ anymore, particularly when you take the cap on EPS growth by international headwinds into consideration.
What does all this mean? Well, it means that it is going to get really ‘real’ around here. Really take some time to think about it here. You will have to put your trading game face on and get those sugar plums from your head. Rest up a bit and then get motivated. The year 2015 has started with a boom.