The market continues to retreat while the earnings report from those notable tech stocks and social media stocks continue to be released. So far, the only stock that popped to the upside after its earnings report is AAPL with most others just bounce and then sold off. Next week, there are more high beta stocks and social media stocks scheduled to release their earnings, and looking at their price actions the outcome might be just the same no matter what the earnings result will be reported. It is hard to change a prevailing market sentiment after it has changed. This revised downward earnings reporting quarter is definitely not the catalyst that will change the current sentiment, it appears to reinforce it.
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Until this market has decisively established a direction, and I mean including the DJIA and SP500, one should continue to remain cautious and be very defensive. Again, cash is a position. Therefore, sideline might be a good place to be.
Disclosure: Long AAPL.
