I find it kind of bizarre that the reason du jour for bidding this market to infinity is yet another “stimulus” package. To me, it’s kind of like theta burn; the closer we get to election day, the smaller the chances of the political process conjuring up such a package (because, let’s face it, the package is nothing more than a blatant bribe for votes). As with theta burn, the rate of decay will increase as we approach November 3rd. For crying out loud, there are only 20 days left; do you honestly think the two sides, which hate each other’s guts, are going to make peace and throw trillions of dollars in bribes toward the public? I don’t.
In any case, the market is sure acting like it will. Here are some key earnings tumbling out before the open tomorrow. A couple of them are the boring, always-go-up, no-matter-what variety………
The scandal-plagued Wells Fargo is on deck; they are resting precisely on their long-term trendline.
The rest of them all look quite vulnerable. I find it especially interesting to watch these, because JP Morgan had oh-my-God blowout earnings today, and they got absolutely kicked in the balls. Anyway, here are the rest: