BAC down 5.19%, JPM down 2.81%, GS down 2% and yet the markets hung in there admirably and with the help of a rally close to the end of the trading day, almost managed to close in positive territory. What could this mean?
(1) There is amazing underlying strength in these markets that can even withstand selling in heavy weight names like above. Do not mess with the bulls.
(2) This is just the calm before the storm and the action in financials today is a signal of things to come. See what happened to JPM and INTC after beating the street.
Both of the above are valid scenarios. Take your pick. My opinion? I am leaning towards the former. The bulls have been very impressive so far and in my view, they deserve the benefit of doubt. How long am I willing to give them this benefit of doubt? As I have stated many times before, until the bears manage to close the markets below 1150.
Take care and good luck!
2 comments:
There is maybe 1 week tops left for the bulls in this one, investors are going to quickly lose interest in earnings as most will be mediocre and provide little direction for future growth. Everyone will continue to look to policy (domestic and foreign) to either be a catalyst or a body bag for stocks. The bulls better hope that semi-bad news keeps flowing in enough for the fed to keep pushing rates down to 2 on the 10 yr note. That would provide support for stocks otherwise i don't see 11k for the Dow as either fundamentally sound nor logical as an investor i mean look at the balance sheets people, the cash is there but where are the customers? Your about to see a slow painful decay of overall consumer spending yoy. That being said i agree that markets can stay illogical for longer than expected... thats why i said a week ;-)
Hello, what do you think about the death drop of TGB today? Reminds me of the May 6th crash, blew my mind.
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