Fed Ex Issues Positive Guidance
Last Friday was an important day for the stock market. The S&P 500, which happens to be the benchmark index for U.S. equities closed above 1100. This morning we were also met with positive earnings from market bell weather, Fed Ex (NYSE:FDX). More importantly, Fed Ex issued positive guidance. This news has the pundits talking about a rally to 1150. Fed Ex has often been a great indicator of the economy and this may give bulls a little more courage. We may also see some of the money come of the sidelines due to the fear of being under invested.
Now we have seen many false starts on rallies recently, but considering that FDX’s competitor United Parcel Service (NYSE:UPS) also had good numbers, this rally might be for real. As mentioned above, many bulls are calling for 1150 on the S&P, but there is a patch of resistance above in the 1115 area. Skeptics also say we could have a re-tracement to 1040. However, right now it looks as if the sentiment is changing to positive.
How does this impact penny stocks ? We always mention on this blog that it’s easier to find hot penny stocks in bull markets. Just from the mere fact that investors are more willing to speculate when they have gains and feel good about there portfolio in general. The positive sentiment leads other penny stock newsletters to be more bullish as well. The best way to play this out is to look for a close above 1115 on the S&P 500 before getting aggressive. In addition to picking your favorite large caps, compile a penny stock list too. Past history has shown us that a rising tide can lift all boats. Just remember to invest accordingly, limit your losses and always save some liquidity.
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