S&P 500 Loses 5% for Q1 2022Yesterday I warned readers to treat this rally with caution. Let's just say it was "tripping a few wires". For example, meme stocks were rallying more than 150%... Cathie Wood's ARKK ETF was starting to move sharply... and short-term option trading hit 2021 frenzy levels. Market froth was back...
Be Wary of this Near-Term RallyDo you trust this rally? Is the buying demand real or synthetic? It's been a 'rip your face off' rally the past three weeks. Earlier this month I suggested that "Markets Could See a Near-Term Bounce"... turns out they did just that.
Markets Could see a Near-Term BounceAre we approaching a near or longer-term bottom? That's very hard to answer... but I do think we might be about to encounter a short-term bounce. That said, there are a few technical hurdles the market needs to overcome before we turn outright bullish.
Why I Added to Shopify TodayMarkets don't like non-profitable companies. They are being thrown out. Some of them deserve to be. But strong free cash flow companies deserve a closer look. Shopify fits that bill... this is why I bought some today.
Do You Buy Meta Platforms (FB) Here?Tonight”s post focuses on the 41% slide in Meta Platform”s (i.e., Facebook) stock. Is this a buyable opportunity? Or is it one to avoid? My short answer is two-fold: (a) I think we could see a little more downside; however (b) if…
The Punishing Price of Missed ExpectationsA look at the earnings vs expectations from Paypal, Facebook and Google...
‘Buy the Dip’ or ‘Sell the Rip’?At the start of the year - I said expect a 10-15% sell off in the first half of the year. This is now playing out... but there could be more to come. Do you buy the dip... or sell the rip?
S&P 500 Down ~9% in 3 Weeks… That’s a Good ThingTo start the year - I was looking for a 10-15% type correction. And if we were lucky enough to see that - it would be a great opportunity to pick up share in quality companies which are profitable; and/or have strong free cash flow. Today you had this opportunity and it's exactly what I did.
Remain Wary of this BounceOver the longer-term - the market always correlates to the direction of earnings. The exception is when we have a negative economic backdrop... which we don't have today...
Value over GrowthEquities are starting to understand the Fed is serious about containing inflation. This is no longer "let's wait and see" ... it's "we have a problem". This will have meaningful impacts for growth stocks...
