FAANG’s Bitemarks

By Tim Knight

As the earnings season starts to wind down, it seems the big message from the FAANG stocks is that, earnings projections be damned, this market wants to go up. Just look at what we’ve seen from the components:

  • FB: reported after the close on the 30th; company clearly has turned itself around and price exploded nearly 20% the next day;
  • AMZN: reported after the close on the 31st; stock got absolutely reamed, losing nearly $100 the next day; market didn’t budge;
  • AAPL: reported after the close on the 29th; in spite of softening sales and weakness from China, stock skyrocketed the next day;
  • NFLX: reported after the close on the 17th; stock slumped for a few days but has since recovered and is now rumored to be a buyout candidate from fellow FAANG member AAPL;
  • GOOGL: reported after yesterday’s close……..

……and got smacked all over the room……….

Continue reading FAANG’s Bitemarks

Mixed Bag of Tricks

By Tim Knight

After the absolutely unchecked pandemonium of Facebook over the past 24 hours, the world was on the edge of its seat with today’s featured presentation, which was the Amazon earnings report. After all the FB madness, AMZN turned out to be a relative bore. I mean, it’s UP and everything, but as I am typing this, it’s only 0.5% higher than its high yesterday. So – – not exactly setting the world on fire.

By the way, I just BET that there are at least a few folks out there who feasted on out-of-the-money AMZN weekly puts just on the chance that it would “pull a Facebook”. So that money’s all gone, because AMZN did pretty much what it’s supposed to do.

Continue reading Mixed Bag of Tricks