Amazon (AMZN) failed their earnings forecast, disappointing its investors, and it caused the stock to drop 14% in one week. Amazon is a big company and it has a potential to move the market, everyone was hoping for good earnings announcement in hopes the market will be bullish again. Instead stock went down to 1530 with the next stop at 1400 if it continues to fall.
Everyone is anticipating earnings announcement from Facebook (FB) and Apple (AAPL). These two behemoths can move the market and now it’s up to these two to continue the bull run, or plunge it into chaos and start a bear market.
To me, the market is still bullish, even this small drop did not affect the bullish sentiment.
Facebook reported their earnings when I was writing this article, and stock dropped in after hours trading. Report was better than anticipated, so even though the stock is down in after hour trading, tomorrow should be a good day.
As always I will not trade facebook until I see a good confirmation, because there might be a selloff right after the report.
Now let’s wait for AAPL to report their earnings and then I believe the bulls will continue to run.