Its Sunday night, a week that has been hectic to say the least is over and its time to get back to the daily grind. Looking at the great earning season for many investors, its time to watch the show come to an end this week and unlike the past, this could be a sign for a sell-off.

Markets have been on a fast paced rise for the past couple of months. New highs have been established, companies have beat expectations and put fourth better guidance. Its all good news right? So why the signs of a retreat? Well one big reason is profit taking. Everyone wants to skim the foam off the top once the money starts rolling in. This alone will be enough for many to start selling and holding back for the next floor to be established.

In March we saw historic lows, these floor levels will not be seen again unless there is catastrophic news, but it will be interesting to see HOW low we go. Home Depot, Hewlett Packard and John Deere are on deck this week as some of the titans to announce their earnings. This along with the Feds guidance this week will be keys to a sense of better direction.

Historically speaking, September is the worst time for stock performance. We all saw this in 2008 and again, it will be interesting to see how the week flows and grows closer to the end of the month.

If you are riding heavy profits, it could be time to pull off the table now and take a breath. Its easier to miss out on a few points on the upside instead of crying over evaporated gains and a potential position in the red.

Looking at the Week:


Earnings to Watch:
Lowes (Monday)
Home Depot ,Hewlett-Packard (Tuesday)
John Deere, Limited Brands (Wednesday)
Sears Holding, Gap, Intuit, GameStop, Heinz, Hormel, Ross Stores, and Salesforce.com (Thursday)
J.M. Smucker (Friday)

Happy Investing!

Aman, MBA

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