Hi Traders, the market finished a very volatile week, where the S&P 500 lost 1.26% although oil prices gained 8%. The volatility is expected to continue this week with the beginning of the quarterly earning reports season. The expectation are at six year lows! Analysts expect the S&P 500 company's earnings to fall as much as 7.9%. It is possible, as we usually see, that the analysts are trying to lower the expectations more than required, however, there is no doubt that this is a challenging earning season. This week direction may be dictated by the results of four large banks: JPM, WFC, BAC, C which will start publishing results on Wednesday. Let's take the technical view of the market. Watching the S&P 500 daily we can see the pullback this week and we have to watch the 2000 point area because this could be the pullback target. If we take a look at the weekly, we will see that S&P 500 is still downtrading.
Let's take a look at the last week picks. The first one is Altria Group
Let's have two pics for this week. My first pick for the week is Kansas City Southern
I wish you a great trading week and see you next week.