HP stands nearly alone

In an update to yesterday's post about Hewlett Packard's (HPQ) excellent performance not necessarily being an indicator that the entire tech sector would do well, I wanted to comment on yesterday's market action.

In a day marked with bad news on the financial, housing and inflation fronts, the technology sector managed to rally 1.7%, largely due to HP. Was this positive attitude warranted?

As an anecdotal survey of the state of tech yesterday, one can always use as a proxy the posts on the Tech Trader Daily blog at Barron's. Here is what yesterday looked like on one of the best tech blogs:

The following stocks reported poor earnings, weak guidance or both: Tekelec, Novatel, Verigy, MEMC, Analog Devices, DealerTrack, Veraz, Garmin, Limelight, ComCast, Verizon, AT&T, Qwest, Sprint, Sharper Image, 3Com

The following companies provided good earnings, good guidance or both: Local.com, Synopsys, BIDZ

That's 16 companies on the negative side and 3 companies on the positive side. Pretty lopsided. HP, having reported the previous day after the close, was not included in yesterday's posts.

To support a sustained rally in tech, one would expect to see more good news coming from a wider variety of tech companies and especially from some of the smaller players. This mini-survey does not indicate that we are there yet. I get the impression that yesterday's rally in tech may have been more about being over-sold or about short-covering rather than being about the bright prospects of the overall tech sector.

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Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here: https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

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