This market is defying logic by reacting negatively to extremely positive earnings, case in point NFLX, VICR & more......
Leading averages are showing disturbing divergence, which may not bode well for this TAPE...
Here are snapshot of key indices :
DOW Down 5.76%
S&P 500 Down 5.89%
Nasdaq Down 8.41%
RUT Down 11.48%
SOX Down 16.30%
Here are few stock snapshot to further ponder :
GOOG Down 13.93%
AMD Down 13.93%
AMZN Down 13.97%
NVDA Down 21.72%
FB Down 29.54%
This week AMD Reporting on Wednesday
AMZN reporting on Thursday
GOOG reporting on Thursday
IF the reaction to good earnings report is going to be the same then all 3 stocks are going to enter " bear market "
NVDA & FB have entered " bear market " territory already.......
Nasdaq is below 200 DMA.....
SOX has entered " bearish cross "
DOW & S&P 500 are above 200 DMA.....but below 50 DMA
I have given enough statistics for all traders and investors to exercise " caution " in near term and watch reaction to earnings closely.
My conclusion is, that " trend is NOT your friend "
Good luck with your own analysis and your comfort level.
BLOG does NOT give buy or sell.
Saleem
3 comments:
Hi guys,
Last Week: -0.63% (YTD: +32.73%)
Notable Winners: KRYS VRNS ESTC VICR
Notable Losers: SPLK APPN MTCH SAIL TRIL CSOD HUBS
It turned out to be a fairly flat week after everything was done, but this is a big disappointment from Wednesday's close where my portfolio was up much higher. My crystal ball here is very cloudy, and I don't know what steps I should take in the portfolio. We are fighting many opposing forces like rates going up but in the face of an apparently slowing global economy, which usually doesn't happen together. We are also facing a small cap market that usually rises nicely in November and December, but we are reaching a point where the exact opposite could happen and these stocks may need to be mass dumped out of the portfolio before year's end to save the yearly portfolio performance.
Ultimately, I don't think the pain is over, and at some point I may have to preserve my portfolio's yearly performance also and just sell everything. I hope I can avoid this fate, but I've worked too hard this year to let it all slip away. I wanted to wait for earnings reports on these companies I've purposefully selected, but I'm not sure even that can save them now...
Holdings: CHGG CSOD VRNS PLAN PS VICR SAIL HUBS MTCH TENB APPN ESTC SPLK TRIL, cash 0.0%
Stocktrader
Hi guys,
Sold HUBS @ 131.15
This is my name I have least confidence in the earnings because I haven't listened to a call in a long while. I bought it last week after some positive analyst commentary and looked for a bounce off the lows, which we got but it has since fallen back.
Bought STRO @ 14.50
Dipping my toe back into the water on some biotechs, especially after the glowing analyst thoughts today on their initiation coverage of this recent IPO. Here's an example of those:
Sutro Biopharma initiated with an Outperform at JMP Securities
JMP Securities analyst Konstantinos Aprilakis started Sutro Biopharma with an Outperform rating and $28 price target, stating that he believes the company is poised to grow into an industry leader in the discovery and development of protein therapeutics. Sutro's XpressCF platform is "truly unique and years ahead of the competition," while the company is "about more than just discovery" given its lead asset STRO-001 entered a Phase 1 study in patients with non-Hodgkin lymphoma and multiple myeloma earlier this year, Aprilakis said.
Stocktrader
Hi Stocktrader,
Good luck with STRO....
Saleem
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