Apple and Amazon missed earnings last week due to supply chain and labor issues. The overwhelming response was to buy the dip because Wall Street believed the issues are temporary. We believe the supply chain issues are temporary too. But how long is considered temporary? It seems that no one cares because everyone is flush with money!
The market bounced back impressively from the early October low as if nothing mattered. The DOW and S&P 500 both made an all time high with the NASDAQ falling a little behind. It looked that all is well at the index level. But under the hood, we see quite a lot of divergences that are warning signs, which
Last Friday the DOW and S&P 500 reversed from short to long signal at 1:35 pm, the NASDAQ finally complied and also reversed from short to long signal at 2:35 pm. The unison intraday reversal from short to long signal in the afternoon normally means the general sentiment of the market was wrong. The vast
The Fed spoke last week and saved the day. The Fed talked about tapering “soon”, but not now, so the market breathed a sigh of relief! Last Monday the three major indices fulfilled a peak to trough 5% correction. Then the market quickly reversed the correction. The S&P 500 and NASDAQ traded above their perspective 50-day moving average
The equity market spent the month of May in the void, it didn’t go up and didn’t go down either. But underneath the surface, the market has been correcting the excesses in different sectors since January 2021. Now the last sector left to be corrected is the re-opening stocks. The peak of the everything is priced in for a perfect re-opening.
