Morning Comment: Will Meta's (FB) Earnings Report Signal An Important Change In Thinking Among Investors?


It was a very interesting day in the stock market yesterday. It opened nicely higher after we got some very positive earnings news out of companies like GOOGL and AMD. However, the rise faded throughout the morning…and the S&P 500 actually fell to the “unchanged” level just before noon. Then, it was able to bounce from that level…and gave us a slow and steady rise over the afternoon. This took major averages above their morning highs by midafternoon…and helped them all close at their highs of the day.

As the market moved steadily higher in the afternoon, we wondered out loud whether traders were setting themselves up for another “earnings rally” on Thursday. Let’s face it, the market had rallied nicely in the morning after MSFT, AAPL, and GOOGL reported…so why wouldn’t it rally nicely after FB reported earnings as well? In many ways, it made perfect sense for short-term traders to make this bet.

However, as we all know by now, FB missed badly last night…and the stock is trading lower by more than 20% as we write. This has caught many short-term traders offsides…and it is likely to lead to a very rough morning today. We’re not just talking about the opening. If the market does not bounce immediately, we could easily see some continued selling in the hours after 9:30.

The real question is whether the earnings out of FB has an impact on the confidence of all market participants…not just short-term traders. There has been a feeling in the marketplace recently that earnings would be the catalyst to bail us out this correction. Ever since we saw that HUGE intraday bounce on Monday the 24th…which was followed by a strong reaction to MSFT’s earnings (and the same for AAPL’s earnings two days later)….a lot ...

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Morning Comment: The Fed is stuck between a rock and a hard place.


It was obviously another wild day yesterday…as the almost 3% decline in the S&P 500 index was completely erased by 3:00…and then it lost 40% of that bounce in the last hour of trading. The bounce looked like it was ...

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Morning Comment: Ripe for a Short-Term Bounce Soon?


Wall Street has finally come around to the understanding that when the Fed told us they were going to shift from a policy of massive accommodation…to one of tightening…that also told us that their safety net had been moved lower ...

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Morning Comment: Crucial Day For The Stock Market....Oil Ripe For A Breather

The stock market had another rough day yesterday…and all of the major averages got hit especially hard late in the day. This caused them all to close on their lows of the day. That said, the “internals” were not as ...

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THE WEEKLY TOP 10


THE WEEKLY TOP 10


Table of Contents:

1) Fed tightening might not hurt the economy much, but it WILL hurt the stock market (further).

2) The Fed cares MUCH more about the credit markets than the stock market.

3) Trying ...

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Morning Comment: Just How Strong Is The Consumer?


It was another rough day for the stock market yesterday…as the S&P 500 fell 1.4% and the Nasdaq declined 2.5%. The futures are looking lower again this morning, so it looks like our concerns from earlier this week…that the bounce ...

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Morning Comment: Emerging Markets Testing Key Resistance



The stock market saw some more upside follow-through yesterday from the big bounce off the lows it saw on Monday, but unlike Monday and Tuesday, the market did not close on its highs for the day. Don’t get us wrong, ...

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The FAANG Stocks Are Close to a Key Support Level



Sometimes people say that a move in the marketplace is a “delayed reaction” to some other development. This reasoning can frequently be used when people have no idea why some asset or another experienced a big move on a given ...

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Morning Comment: Will the action in January really tell us anything?


There are many short-term “seasonal” plays that usually workout quite well for the stock market. For instance, the stock market usually does well around long weekends (especially Memorial Day weekend). It also usually rallies in the days surrounding Thanksgiving and ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) Lower asset prices do not mean the Fed has made a “policy mistake.”

1a) The last time the Fed tightened; they didn’t worry about the stock market.

2) Massive stimulus = more ...

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Morning Comment: Will Cryptos Bounce Once The Year-end Selling Ends?


There are two days left in 2021 and this is going to be a year where no Boston professional sports team won a championship. In fact, none of them even made the finals. There is no question that this is ...

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Morning Comment: Don't Blame The Fed



Well, we finally did get a relatively uneventful day in the stock market yesterday. The DJIA closed in positive territory…while the S&P 500 closed with a very mild loss (and the Nasdaq & Russell 2000 finishing the day with a ...

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