Lots of events this week for investors and traders to digest. We had the 0.25% increase decision which surprised almost no one. However, Chair Powell did sound a little dovish (or at least that is the way traders took it) when he made his comments after the release of the number. Markets rose into the remainder of the trading day.
Then we had some influential company earnings releases. NFLX blew away expectations after the close Wed and powered higher on their numbers. One the flip side. AAPL, AMZN and GOOG all disappointed with misses on Thursday. Most notably, AAPL gapped down but then buyers obviously saw value and started pushing the price back into the green where it finished the day.
We ended the week with some job growth numbers that came out at about 3 times higher than expected. Interest rates and the US dollar popped on the news and index futures sank. Friday turned into a wild ride with the markets popping up at the open and then in the afternoon, sold off to close near the opening price. That price action could be considered bearish but there still could be a lot of ROMO (regret of missing out) on this rally that has already happened with investors and their money sitting on the sidelines waiting for another leg down which has not happened yet.
Overall the week, money continued to flow into riskier, high growth stocks with the IWM small caps and the QQQ the biggest upside movers. The DOW was down slightly which illustrates this rotation of capital.
Volatility remains low but may be bottoming as we have come a long way up from Dec and Oct lows. Watch for more volatile action this week with 50% of S&P stocks still on deck to report.
Last note; have you noticed AI stocks are getting a lot of attention these days? Watch for more companies to jump on the band wagon and likely get a subsequent pop up in price. This could be the start of a hot sector mania I discuss in my books.
What to Watch for this Week:
Sectors in Play Last Week:
Earnings this week:
Brian (Randy) Pezim is a Canadian trader and investor, with a focus on swing trading equities as well as day trading.