During earnings season, there is always one particular stock which is the star of after-hours, and on Wednesday night, it was Tesla. The earnings report was very positive, so the stock if flying higher, lifting about $100 from where it closed yesterday.
As such, everything is raging higher, with the NQ in particular up over 1%. The S&P futures, shown below on the /ES chart, are up about 40 points as I’m typing this. The next key level is emphasized below, which is the most recent “lower high” as tracked by those red circles.
In the broadest terms, stocks went down during January and February and have been going up in March and April. Crudely speaking, the reasoning seems to be:
- January: inflation is coming, and interest rates are going up;
- February: Putin is going to invade (and did invade) Ukraine;
- March: Meh, this Ukraine thing isn’t such a big deal;
- April: Hey, earnings are looking good after all
It’s funny how people were freaking out about the invasion, and yet now, when things look WAY more grim (take note of how peace talks were all the rage just a week after the war started, and now those are totally disbanded) stocks are stomping higher almost daily.
The Russell shows what a big fat mess 2022 has been, because we are yet again stuck in one of these meandering ranges.
As for gold, which had been shaping up nicely thanks to the war and inflation, it seems to have screwed the pooch once again, having failed to hold its breakout. So it’s flopping around like a caught fish while everything else is thriving.
Indeed, just about the ONLY thing falling besides gold is, incredibly, Netflix, which got absolutely destroyed yesterday (funny how NFLX getting torched meant nothing to the market, yet TSLA doing well apparently means everything is awesome). As for Netflix, perhaps they should reconsider such fare as He’s Expecting since it doesn’t appear to be everyone’s cup of tea.
