This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

QE Fatigue Spreads on Weak Earnings

Stocks in this article: XLP XLY XLI XLB XLE XLK

NEW YORK ( TheStreet) -- The stock market needs to rally significantly Friday to avoid the spread of "QE Fatigue" to additional equity averages and to ETFs that represent stock market sectors. The cause of this contagion is weaker-than-expected earnings reports as companies miss on the bottom line, or lower forward earnings guidance.

Stocks are not fundamentally cheap. At we show 11 of 16 sectors are overvalued, six by double-digit percentages: construction by 18.5%, medical by 12.6%, finance by 11.7%, retail-wholesale by 11.6%, consumer staples by 11.3% and utilities by 11%.

On Monday, I profiled six stocks that reported quarterly results on Monday and Tuesday in Earnings, It's All About the Bottom Line. Five of six stocks missed on the revenue line including three Dow components: DuPont (DD), 3M Company (MMM) and United Technologies (UTX).

On Tuesday, I profiled another seven stocks that reported quarterly results Wednesday through Friday in Apple, Amazon Face Tougher Scrutiny Reporting Earnings. Dow components Boeing (BA) and AT&T (T) missed on the revenue line, as did Amazon (AMZN). Apple (AAPL) missed on earnings, with revenue slightly ahead of expectations.

Analysis of the Yield on the 10-Year Treasury Note (1.828): The weekly chart continues to show risk to higher yields given a close today with the yield above the five-week modified moving average at 1.703%. My quarterly and annual value levels 2.109% and 2.502% with my semiannual pivot at 1.853% and monthly and semiannual risky levels at 1.681% and 1.389%. My semiannual pivot at 1.853% held on Thursday.

Analysis of Comex Gold ($1713.2): The weekly chart for gold will be downgraded to neutral on a close Friday below the five-week MMA at $1731.2. A close below the five-week MMA next week pulls momentum out of overbought territory and results in a negative weekly chart. My semiannual, monthly and annual value levels are $1,643.30, $1,606 and $1,575.80 with my semiannual pivot at $1,702.50, and quarterly risky levels at $1,844.90 and $1,881.40.

Analysis of Nymex Crude Oil ($86.12): The weekly chart for crude oil stays negative on a close Friday below the five-week MMA at $92.16. The 200-week simple moving average is a major support at $82.44 with monthly, annual and quarterly risky levels at $91.34, $103.58 and $107.31. The 200-week SMA has been a magnet since mid-2009.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs