Bull rage back with Tech ER. Bear is dying.
The bear has fumbled each sell, one more pop....
Stocks recorded mixed returns as attention focused on the season’s busiest week of quarterly earnings reports. 35% of S&P 500 Index companies, representing 44% of its market capitalization, were scheduled to release results during the week.
Big tech earnings shook the market this week, the bulls happy while the bears convulsed for the 100th time this month. MSFT 0.00%↑ AMZN 0.00%↑ META 0.00%↑ GOOGL 0.00%↑ all reported ER this week and all but GOOGL 0.00%↑ and AMZN 0.00%↑ gapped up. These are the current laggards that are looking for a continuation to the upside. This coming week we are expecting to see AAPL 0.00%↑ post-earnings which is going to solidify our move, leaning towards the upside at this point.
The economic slowdown is ever-present with this week’s cyclical sectors performing poorly, a lot of weakness comes from the manufacturing sector.
US T-yields dropped slightly on the week, still holding out the channel that can be drawn from a technical perspective but bond prices are still holding out (no real upside pop that were waiting for). This is right before the Federal Reserve meeting, as we expect a 25bps hike this week.
This week in terms of earnings we have:
Monday: MGM, CHGG
Tuesday: UBER, PFE, AMD, F, SBUX
Wednesday: CVS, QCOM, MRO, FSLY, ETSY
Thursday: DDOG, MRNA, PTON, AAPL, SHOP, DKNG, CVNA
Friday: FUBO
This week, all eyes are going to be on Fed & ES 0.00%↑ reaction towards the decision.
Right now we’re running up from 2 days of bulls steam to close out the week. We did have a blackout period from the Fed and a very low volume move overall. We’re running up into some key areas on the S&P500, 4206/08 region which is the top distribution block where we could see some bears try to activate. However, the bears are most likely going to have a rough time yet again. Then the start of the distribution is at 4223/25 which I anticipate is going to be a hard area to pass through.
I would like to see a harsh failure from the 4206/08 or 4223/25 into the 39XX before we actually see some more upside.
The macro and the bears are getting absolutely smacked around.
Big Tech & Earnings
This past week we saw huge tech earnings come out which did A LOT better than anticipated. GOOGL 0.00%↑ MSFT 0.00%↑ META 0.00%↑ AMZN 0.00%↑ all posted this week before AAPL 0.00%↑ comes out which is coming out in the following week.
GOOGL is still fighting with the 108 region as a huge resistance, even good earnings didn’t manage to break through the region. They posted a positive ER & Revenue beat, along with good potential forward guidance.
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