If there isnt a smoking gun in these transcripts…
Most important points:
Growth worsens. Continue to avoid growth.
Everything else fails at highs. The SOX moved to highs for the 3rd time but now seems to be rolling over in the near term.
NASDAQ/NDX now below the 50 day. Nothing good can come from that. Needs to get back above.
End of quarter week in effect. Of course, window dressing is illegal so it does not happen.
WeWork is in the news. Not for anything good. Looks like some tough sledding for those who bought into the ridiculous valuation placed upon this company. We are told the last “buy” was at a $47 billion valuation. This for private buyers. Private buyers are the ones that very often make out in a big way. Currently, WeWork cannot even come public as estimates now are for a $10-$15 billion valuation. We believe that even at those levels, the valuation is insane.
We can get into the why…long term leases and short term rent, hardly recession resistant, trying to sell the company as a technology company (a laugher), self dealing, un-disciplined CEO! But for us, the simple issue is the investment banking community again tried to foist stuff onto an unwary public at valuations that are outrageous. For comparison:
IWG…formally known as Regus
So Bernie goes one up on Elizabeth. On his twitter feed, he writes: ” There should be no billionaires. We are going to tax their extreme wealth and invest in working people.”
He then proposes this YEARLY wealth confiscation:
Futures up just because….oh yeah, the administration took back what they said about China on Friday…just dont blink.
It is the end of quarter window dressing period where typically, nothing bad happens. Of course, window dressing is illegal so it does not happen.
The big 4 indices continue to trace out constructive patterns. Just need one big shot to break them out of range. Keep in mind, underneath the surface…not as good but if the big 4 break out of a big range, will be quite important heading into earnings.
And one other note…the SOX also trades constructively at the highs as it had a normal pullback at the highs. If it can break out with the big 4…big news.
Futures down this morning but not much. A few notes:
GOLD/SILVER look like they have found support off the recent pullback. Would love to see some time put in at or near these levels.
BONDS bottomed recently after some corrective work. Lower yields on the long end have not been received well by the market…so far.
Before Friday, there were 2 churning days, especially in the NASDAQ. Friday added some decent distribution. Watching the all-important SOX as 3 times into the highs still not getting through the highs.
Growth leadership…what growth leadership? Growth aint happening right now as money flows continue to find value plays.
ROKU…when you have a chance, take a look at the feast and famine chart. Lesson: always have stops in place…and the biggest drops do often come from the biggest leaders.