I have been talking for over a week how I was going to watch several key leadership stocks this week as they report earnings. Well, two of them, MSFT and AAPL, reported blow-out earnings yesterday and went down. MSFT did it on the open and gapped and faded and AAPL did it after the close and is trading down in the pre-market trading early this morning. We got a few more on deck to watch today and a FOMC meeting that can get people thinking of an easy money Fed and buy. It will be how things look by the end of this week that will be important. Hourly and even daily gyrations don’t matter that much.
But stocks selling earnings is a sign of a tired rally and for laggard stocks it could be very dangerous. TSLA reported “earnings” yesterday and finished down hard despite saying that it made billions. They are good at accounting and have used Bitcoin for earnings boosts. Musk promoted Dodecoin again on Monday as rumors spread in the morning that Amazon might accept Bitcoin for payment, which Amazon denied by Tuesday morning. Maybe he is trying to pay for a rocket launch.
TSLA is hanging right on its 200-day moving average and is still way off of its February high.
TSLA is a laggard stock with declining relative strength against the S&P 500.
Gold is starting to firm up. I talked about the market trends with Jim Goddard of www.howestreet.com.
David Skarica also did a video updated with some trades he is doing you can find here.