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Stocks saw another week of gains as equity markets flew higher with strong action over the past 8 sessions. Strong corporate earnings in the first set of earnings reports lead the Dow Jones Industrial Average to close at an all time high. We've seen most companies beat expectations as there has been a great start to this quarter's earnings season. Reports from companies across industries, from Tesla to Procter & Gamble, have demonstrated that corporations are finding creative ways to deal with supply-chain issues, high labor costs & inflation.
The broad market has gone straight up since we pivoted 8 days ago and is now looking a little winded as it runs into all time high resistance. We could use digestion in the indices or even a controlled pullback to remain in a healthy environment. We cannot anticipate stocks to just continue ripping higher each day like we have been seeing. Individual stocks can continue to move well as long as the broad market doesn't completely fall apart with a bloody red selloff. With the recent strength we've seen, I would anticipate some digestion in the next few days rather than a full fledged selloff, but we have to be prepared for anything out there.
We have an even bigger week of earnings reports incoming as we look ahead to this week. Apple, Amazon, Facebook, AMD, Google, UPS, Boeing, Shopify, Twitter and hundreds of other companies are all slated to report. This may be the biggest week of earnings all season when looking at the size and scope of these behemoths all reporting together. So my main focus this week will be on all the different earnings throughout the week as the winners will be the market leaders of tomorrow. You simply cannot do enough research as there are endless amounts to do in these times.
More research = more money, the choice is yours.
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