Midweek stock market report: Is it temporary resistance or the start of a correction? Those are often tough calls for stock market mavens. Earnings seasons are the stimulus for more stock market gains or a drop back to more reasonable levels. For the most part, the factors that drive the stock market are not earnings that occurred months ago, but the earnings that will come in the months and years ahead. So, it is what the companies say about their prospects that really matters, not what has already happened.
So far, this past week has been a mixed picture. Some good, some bad. With such unconvincing earnings performance and projections, the stock market may be trapped in a narrow range. If any of our FunStocksIndex stocks drop (like Panera Bread Company/PNRA) due to short-term dynamics, it is time to add to our stock holdings of these excellent businesses.
Midweek Stock Market Report – July 24, 2013