Hi Traders, the market finished a very volatile week, where the S&P 500 lost 1.26% although oil prices gained 8%. The volatility is expected to continue this week with the beginning of the quarterly earning reports season. The expectation are at six year lows! Analysts expect the S&P 500 company's earnings to fall as much as 7.9%. It is possible, as we usually see, that the analysts are trying to lower the expectations more than required, however, there is no doubt that this is a challenging earning season. This week direction may be dictated by the results of four large banks: JPM, WFC, BAC, C which will start publishing results on Wednesday. Let's take the technical view of the market. Watching the S&P 500 daily we can see the pullback this week and we have to watch the 2000 point area because this could be the pullback target. If we take a look at the weekly, we will see that S&P 500 is still downtrading.

Let's take a look at the last week picks. The first one is Altria Group (MO  ) long, which did move over my trigger, but did not yet reach my first 3% target. It is doing good and I hope it will continue this week. The second one is Procter & Gamble (PG  ) long, which did not trigger. However, while the market moved down, PG held near the highs, so it looks like a perfect formation for next week too.

Let's have two pics for this week. My first pick for the week is Kansas City Southern (KSU  ) long over 88,84 USD. It is rail transportation company, it looks great and technically, if the market is going to continue higher, KSU looks like a perfect trigger. The second one is Yum! Brands (YUM  ) long over 82,60 USD. It is the restaurant company that owns brands like KFC, Pizza Hut, Taco Bell and more. It looks like a perfect formation, it moved up quite a bit in the last few weeks and I think that the journey may continue.

I wish you a great trading week and see you next week.