Amazing Stock Market Earnings Action
QQQ QQQ wow. Looks so good. I’m so impressed with this market action. QQQ almost broke out today. AAPL did breakout today. That’s holding a breakdown risk the market just had and passed with flying colors.
The market’s showing a bit more volatility but did an amazing amazing job of holding a breakdown. Remember last year? All topside breakouts were fakeouts. This year though net net has been fakeout breakdowns. The stock market short term is not out of the woods but there’s amazing action signs wrapped around this market.
Microsoft MSFT, and META META launching on earnings news is very stock market bullish. You know we had been bullish on Meta and now our target goes much higher.
Earnings action is a big hint to what large investors want to do next.
Reactions like this mean that investors were in a crouch waiting to buy but waiting for negative reports to pass so they can buy even if the quarter’s not good. But when the quarter’s a little better or a lot better they are forced to compete for stock with covering shorties and it leads to an avalanche of buying.
Bottom line is, I believe large investors are showing their hand willing to look through bad but instead getting ok, which is why we see these avalanches to the upside on earnings reactions for stock market important stocks.
Fed day is next week. There’s a shot they hint to a pause. let’s see. A pause would obviously be bullish.
Q3 EPS Growth Boom Coming
And remember what I said yesterday (to subscribers), I think Q3 is going to be an EPS growth boom. Earnings are showing solid bounce back from a weak Q3 just two quarters ago. So when we lap that Q3 this year EPS can show a year-over-year boom to the upside.
The debt ceiling needs to get worked out but one piece of news today was that tax receipts were strong pushing out the X-date for when the Gov runs out of money to now sometime in July. So sad about this law and management making the country look so bad every couple of years. They have to resolve that but they bought a little more time.
We have some potential bumps with the debt ceiling, some slowdown led by banks but action and earnings are pointing to a Q3 earnings boom and so a strong second half potential for the stock market.
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