Market Passes Another Test
On Wednesday I wrote about The Important Test that the stock market faced with Microsoft, MMM and Boeing all reporting either weaker than expected numbers or guided lower for at least Q1. Remember, if my bullish case was to be proven wrong for Q1, it would be because the market wasn’t prepared for even more corporate weakness.
Look at the far right of the chart. Microsoft opened down about 5% and closed yesterday at new highs for 2023.
MMM opened down about 2% and is at roughly the same price.
Boeing was also down a few percent at the open and actually closed on the day.
So far, so good. The market passed another test. On October 14th, 2022 I began stating that October 13th was either a low of significance or the bear market bottom. Nothing has caused me to waver since then, especially when I saw the masses and pundits come into 2023 so negative. Market activity does not have DNA of a bear market bounce. And while index and market leadership have been strong, I am now starting to see the various growth components outperform, adding more fuel to the fire.
Mother Nature has been kinder to the skiing folks in New England, but she has not been kind. It’s been getting better incrementally but it’s not up to average yet. I am not giving up and will try it again tomorrow in Vermont. Forget about CT. I see golfers almost day on the courses in town. Another great weekend lies ahead for NFL playoffs. With my Cowboys eliminated and the Jets never getting to dance, I guess I will root for the 49’ers and Bengals. As I tell my kids all the time, I just want to see good games.
On Wednesday we bought IJK, more XBI and more COST. We sold IJJ, DUSL and some levered NDX. On Thursday we bought PDBC and more IJK. We sold DIA, VGK, RYGBX, levered S&P 500 and some TSLA.
