Cinderella Moment

The Friday\'s gain is quite assuring, however, whether the market can go higher from here depends on the earning releases of next week. In general, the earnings are expected to be good except in the sectors of financial and energy. Given the stock has gone up so much lately, we really need high profile companys (intc, goog, ebay etc) to have a good quarter to give the market another push.

On economic data front, the CPI will undoubtly draw people\'s attention to the FED front. If the latest inflation trend continues, the CPI data will be good as well, that, in turn, will help the market.

Nevertheless, Market is anxious about the coming earning for sure, and that is reflected in the Thursday\'s selling in my opinion.

Thurday\'s reversal is quite interesting. Bespoke profiled rimm and appl ( see pic attached). it looks like either somebody went to sell more than they intended or they really needed to get out.




If you really think about it, it really because of the fear, the fear that market is topped, the fear that the handsome gains will vanish. A real Cinderella moment if you will.

When Cinderella attended balls (dancing party), it is her time of the life, she really intend to stay as long as she could, but she also knew the danger of overstay, when the clock strikes 12:00, the mouses and pumpkim will be revealed.

For investors in the bull market, they are just like Cinderella, they want stay as long as they could to reap all the profits they could, but they knew once the market reached the top, all their profit could disappear in a heart beat. So, the higher the market goes, the more anxious they become. As soon as clock begin to bang, they rush to the exit without knowing whether it is 12 o\'clock or 11 o\'clock. and Thursday is a perfect example of that moment.

And in the coming weeks, we probably will see more of that moment, with each miss or beat announced, so, buckle up.

Whether the story will end like Cinderella, happily ever after, will all depends on whether the earning will support current price. Given the history of PE, there might be a greater chance that could be the case.

so, let\'s hope