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……….

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Alpha-Bits

By Tim Knight

Equity bulls need a “shock to the upside” to get them back into their long-accustomed feather bed of new lifetime highs every day. Some thought last weekend’s “North Korea Peace Fest” would do the trick. It didn’t. New hope was offered after Monday’s close when GOOGL announced blowout earnings. It looked like just what the doctor ordered, as the stock roared nearly 50 points higher instantly. As you can see by the tinted area below, it wasn’t exactly long-lasting, and you could almost hear the face of GOOGL call owners drop in despair.

googl

Still, the ES and NQ are both green as I’m typing this, with the ES up about half a percentage point. Annoying as that is, the intraday chart over about the past week still makes plain the broader trend of lower highs.

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