PRE MARKET

Google has learned the sandbagging game. Google and the analysts just sandbagged their earnings reports. Everyone knows Google has been reporting 25%+ growth in earnings every quarter…actually, most in the high 20s…yet Google and the analysts set guidance at 8% growth for this past quarter. Yes 8% growth. Guess what the report came in at? A HUGE BEAT OF THE NUMBER…and guess what the growth rate was? I don’t have to answer that question. The “beat the number” game continues. But to be clear, Google (I will not call them Alphabet) is kicking, very strong numbers for such a large company. It gaps into new highs this morning.

NY TIMES article: “U.S. SAYS IT BROKEN UP RING THAT STOLE MILLIONS BY FAKING I.R.S. CALLS!” I am thrilled. I personally have received about 1o of these calls in the past couple of years. Knowing better, I play games with the callers making them believe I am going to pay up.  I then blast Led Zeppelin’s “Rock and Roll” in their ears. Unfortunately, these scumbags prey on everyone, with many actually paying up thousands, and some tens of thousands. Put them away and throw away the key!

Why is there so much bearish talk? Funds selling all their longs. Recession talk. Depression talk. Yes we heard depression talk. And we are not even talking about turning on CNN or MSNBC who report the sky is falling 24/7 because of a certain President. There just remains a lot of bearish talk even though our market has not done a lot wrong. Yes, we have reported that 50% of the market is not participating. But that means 50% is participating. And with the NASDAQ/NDX and the RUSSELL at highs, why are so many so bearish? Don’t know. We’ll just pay attention to price because price is all that counts.

This morning:

The NASDAQ/NDX will open in new high ground as GOOGLE beat handily. As we write this, it is up $53. For a megacap, that is a big $53. In sympathy, other megacaps are also higher. On top of this, the comatose FINANCIALS finally have woken up as our long rates have turned higher. Higher long rates supposedly help the financials as their margins can expand. On top of this, the S&P will open above recent range but still below the January highs. The DOW continues to bring up the rear. For sure, there are still plenty of areas that are weak…emerging markets, industrial, materials, housing and housing-related but there is no reason to be extremely bearish unless the markets dictate so…especially with :

Cut its 7-day Treasury rate markedly.

Launched some QE.

Told banks to flood the system with liquidity.

Slammed the Yuan.

Telegraphed more easing is coming.

Yes, China is easing and in a big way…and as you know, markets love easy money. With the U.S. still with ridiculously low rates, with Japan and Europe still negative and still printing and now China easing even more, the band continues to play on. As always, it is all about price. If price changes, we will let you know. Lots more earnings to come…which can definitely change the playing field. Paying close attention.

And I didn’t even mention the word TARIFF!