Sang Lucci Pre-Market Update January 11th
Premarkets are undecided here for the most part after Wells Fargo (NYSE: WFC) reported earnings this morning, beating expectations and posting a significant increase in net profits. Despite the upbeat report though, the Financials have turned down here with Wells selling down about $.60 off the news. It's possible that the Financials have been bought up with so much vigor that investors were expecting an even bigger beat. The other large investment houses all report next week so make sure to keep an eye out for more bullish reports to prop up the equities even longer.
Most stocks across various sectors are in the red this morning but not significantly at all. This adds more to the dip buyers theory that we'll continue to grind higher until we test the 52-week highs on the indexes put in after the height of the QE3 euphoria in mid-September.
To the dismay of many traders however, indexes may just chop around here which would make it a difficult day for intraday trades and significant alpha moves.
In the options world, this could mean the money will go to the hands of all the writers scrounging to find premium to burn out on time decay.