After the tumble the market took on Friday and Monday, it isn’t exactly shocking that, with eleven years of “buy the dip” success behind them, the buyers stampeded in to pick up stocks that were – – umm – -on sale. As of this moment, however, all this buy has merely mended the hole where that price gap used to be. The NQ has pushed past its own price gap a skosh, but the ES is scraping along that line still.
Of course, yesterday’s positive AAPL results helped buoy sentiment, as the market reached its 3,298th lifetime high in a row. This morning, another gargantuan equity, Boeing, reported as well. Its results, unlike Apple’s, were horrendous, but there was so much bad news factored in the stock price, that is actually went roaring higher.
I just want to put that “roaring” into context, however. Below is the four-hour bar chart. You can see the big move up today, yes, but you have to kind of squint and look closely to do so.
So now the “All Eyes” headlines change direction. Yesterday it was Apple Eyes On Apple, and now it’s going to be All Eyes on the Fed, and Jerome tries to figure out what will please his lord and master at the White House most successfully (the alternate, pitifully, is he is forced to wear the party dress of the big man’s choice).
My disposition remains unswayed: bullish bonds, bullish gold, bearish equities. After the delightful multi-hour bear market we enjoyed on Friday and Monday, let’s see what happens after this bounce, particularly once Powell shuts up.
