It’s early but 26,000 Dow kicked the bears in the teeth. Amazing if it ends up just a 600 point correction for now. Was hoping for 5%-plus just to clean out but aint happening yet. Financials led market up on higher long rates. See you at the close. Big earnings after.
We think we are continuing to see a change in market conditions. After all, we have not seen anything in the way of pullbacks…combined with a gigantic does of bullish sentiment. We have also noticed on the up days, the a/d has not been keeping up. Would also add the DOW is 1200 points above the 50 day average.
We need to add Europe looks like it is topping. The DAX is breaking below the 50 day with the FTSE breaking below it a couple of days ago.
We are not calling for the end of the world but do think things are changing. We also know we are in the midst of earnings season where the jello will be moving on the plate.
Earnings of note:
DOWNSIDE movers: PYPL, BABA, RL, TSCO, UPS. MSFT only down a wee bit.
UPSIDE movers: VRTX, RACE, MA, EBAY. FB has been all over the map. Down 9 in ah but then said better things on call. This morning was up almost $7 but currently up $1.50.
Futures having a rough go of it. Remember, markets are stretched and extended as far as we have seen in a while combined with massive bullishness. Stay tuned. Remember, we have not had a 5% drop in a very long time. 5% drops are as normal as the Knicks having another losing season. It may be time…and if it occurs, it is not a big deal in the scheme of things…but have to be watching for something worse.
After the close, AMZN, AAPL, GOOGL. In other words, the QQQ will be all over the map. The question is whether AMZN and GOOGL are ahead of themselves. AAPL has been range-bound recently with a little bias to the downside.