The Bounce Arrived On Schedule – Now What?
The stock market bounced pretty much on schedule and looks higher this morning. I suspect the initial rally may pause in here and some pruning could be in the cards. While it’s not my preferred scenario, I guess it’s possible that stocks bottomed already, but I still think the absolute low lies ahead next month, even if it’s just at marginally lower levels.
Some very high profile earnings are coming out this week with Tesla reporting some pretty awful news last night. And as you would counterintuitively expect, the stock is soaring in the pre-market to almost $170. This is a classic case of selling the rumor and buying the news. The stock had been decimated into earnings and this year. The same can be said of Boeing which reported this morning.
Facebook, Microsoft and Google remain on tap.
On Monday we sold levered S&P 500. On Tuesday we bought ALB, TTI, EMB and RYPMX.
