Four stocks are getting escorted to the wood chipper in after market trading after they reported earnings. Here’s the current view.
GOOGL ( hasn’t been the same since they changed their name to Alphabet if you ask me)
MSFT
SBUX
VISA
As a result, the SPY and QQQ have taken a bit of tumble in after market trading.
The Dow Jones fell 0.6%. The S&P declined 0.5% and the Nasdaq Composite Index fell less than 0.1%. Not bad action today, but maybe tomorrow it will be a little worse considering the current damage.
U.S. crude prices fell 2.3% to $43.18.
As I mentioned last night, ECB President Draghi spoke today and said interest rates will remain at present or lower levels for an extended period (eternity), keeping the possibility of further interest-rate cuts on the table. He also noted that inflation could turn negative in the coming months before picking up later this year. They are so doomed, its just a matter of time.
But get a load of this….The Bank of Japan also meets next week, and many expect the bank to signal future interest-rate cuts. Former Bank of Japan deputy Governor Iwata on Thursday said the central bank would need to lower its interest rate to as much as minus 1% from negative 0.1% to tackle deflation. They’re just adorable.
Takeway
The bears are DYYIIINNNGGGG to short this market and I think even the bulls are a little nervous up here. The market is still fine and is consolidating bullishly, so we’ll just have to watch things very closely here. Technically, we are not overbought yet at all. They never ring a bell at the top though, so stay fleet of foot.
The SPX lost the 2100 level today, so its important that the bulls take the hill and take that level back sooner than later or the bears will step up.
I added two new longs today, ALDR & old favorite OCUL. As long as this market can stayed glued together I think they should both see higher levels soon.
Wished she still had our LAD short.
