1:05pm (EST)
The bulls got some more bad news this morning and after a positive start the market quickly reversed course after a terrible housing number derailed any momentum the bulls were trying to gather.

Sales of new homes fell off a cliff, tanking 33% to 300,000 last month as potential buyers put on the brakes after the government tax incentives expired. It was the worst number ever posted. Wall Street was expecting a number of 410,000.
As a result, the Dow quickly dropped to a low of 10,227, or 65 points, but has recovered somewhat as the index is currently down 19 points, or 0.2%, to 10,274.
The S&P is still having trouble with the 1,100 level and has traded to a high of 1,096 but is currently down 7 points to 1,088. The Nasdaq is off by 14 points and is at 2,247.
Adobe Systems (ADBE, $30.70, down $2.06) is down 7% despite reporting better-than-expected earnings. The company reported a profit of $149 million, or $0.28 a share, versus $126 million, or $0.24 a share, in the year earlier period. Revenue came in at $943 million versus Wall Street’s expectations of $906 million.

Adobe’s Flash technology has been banned by Apple (AAPL, $270.54, down $3.31) and is not used in the iPad or any other Apple devices. Flash is used for Web videos and other content but this did not seem to soften demand for Adobe’s latest products. However, don’t be surprised if Adobe continues to fall towards its 52-week low of $26.

It feels like the bulls are walking on eggshells. In about an hour or so we will get the Federal Reserve’s latest assessment of the economy. It is expected the central bank will keep interest rates at current levels following the conclusion of its two-day meeting.
The Fed wants to keep rates low to help with a recovery, but the numbers we are seeing from housing and jobs suggest there will be no change in the policy anytime soon.
Tags: AAPL, ADBE, Adobe Systems, Apple, momentum options trading, option picks, options alerts, stock options trading
This entry was posted
on Wednesday, June 23rd, 2010 at 12:08 PM and is filed under Apple, Company Commentary, Market Analysis, Market Commentary.
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May New Homes Sales Down 33%
1:05pm (EST)
The bulls got some more bad news this morning and after a positive start the market quickly reversed course after a terrible housing number derailed any momentum the bulls were trying to gather.
Sales of new homes fell off a cliff, tanking 33% to 300,000 last month as potential buyers put on the brakes after the government tax incentives expired. It was the worst number ever posted. Wall Street was expecting a number of 410,000.
As a result, the Dow quickly dropped to a low of 10,227, or 65 points, but has recovered somewhat as the index is currently down 19 points, or 0.2%, to 10,274.
The S&P is still having trouble with the 1,100 level and has traded to a high of 1,096 but is currently down 7 points to 1,088. The Nasdaq is off by 14 points and is at 2,247.
Adobe Systems (ADBE, $30.70, down $2.06) is down 7% despite reporting better-than-expected earnings. The company reported a profit of $149 million, or $0.28 a share, versus $126 million, or $0.24 a share, in the year earlier period. Revenue came in at $943 million versus Wall Street’s expectations of $906 million.
Adobe’s Flash technology has been banned by Apple (AAPL, $270.54, down $3.31) and is not used in the iPad or any other Apple devices. Flash is used for Web videos and other content but this did not seem to soften demand for Adobe’s latest products. However, don’t be surprised if Adobe continues to fall towards its 52-week low of $26.
It feels like the bulls are walking on eggshells. In about an hour or so we will get the Federal Reserve’s latest assessment of the economy. It is expected the central bank will keep interest rates at current levels following the conclusion of its two-day meeting.
The Fed wants to keep rates low to help with a recovery, but the numbers we are seeing from housing and jobs suggest there will be no change in the policy anytime soon.
Tags: AAPL, ADBE, Adobe Systems, Apple, momentum options trading, option picks, options alerts, stock options trading
This entry was posted on Wednesday, June 23rd, 2010 at 12:08 PM and is filed under Apple, Company Commentary, Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.