Earnings Don't Matter for Amazon... Until They Do

Jul 9, 2020

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01:13 PM PST

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It's a rarity for me get on my soapbox and really rant about something someone else said, so you may want to mark October 24th, 2014 on your calendar - it's about to happen.


I don't know how many of you peruse Yahoo! Finance in your daily efforts to remain fully informed of the stock market's ongoing saga, but I look at it daily. While I don't think Yahoo! Finance is the best resource out there for traders or investors, I do think the Yahoo! Finance home page is the best aggregator of information out there. One 5-second look at the main page, and you've got all the big stories and a market snapshot.

Stocks Are Still Due a Dip Before Rekindling the Bigger Breakout

Jul 9, 2020

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01:13 PM PST

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Well, that wasn't the direction I thought things would go today. I was really counting on the bears growling again, pushing stocks a little lower for a second day in a row and then letting the bulls test their intermediate-term ceilings. Now it looks like the sequence has been re-ordered. Now, it looks like the bulls needed to test their intermediate-term ceiling and then cool things off with a decent step back.


In the grand scheme of things it doesn't really matter. We've been bigger-picture bulls since last Wednesday's capitulation, and we still think it's only a matter of time before the bounce breaks through some more serious hurdles. We're just surprised the bulls were willing to pounce on stocks so soon after a 6.4%, four-day rally. Oh well.

Right on Cue, the Rally Fizzles. How Far Might Stocks Slump?

Jul 9, 2020

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01:13 PM PST

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Happy Hump-Day, folks! We'll get to our usual commentary in a moment. The first thing we want to do today is congratulate all those Elite Opportunity members who scored about a 14% gain [around print-time anyway] from their iRobot (IRBT) position. John Monroe advised EO subscribers to get into the stock back on October 14th, the company reported earnings last nigh, and IRBT jumped big-time today on the heels of the announcement. Chalk up another winner for the Elite Opportunity portfolio!


And yes, I just gave you one of the picks from the EO service. Normally I wouldn't divulge these kinds of details, but in this case members have had a week to act on the idea if they wanted to, and they've got a pretty good head start on any newcomers looking to get into iRobot now. I think it'll be ok.

Too Much of a Good Thing is Still Too Much

Jul 9, 2020

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01:13 PM PST

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The good news is, the market logged its fourth straight day of solid gains on Tuesday, solidifying its message that stocks have escaped a bigger meltdown and are now moving away from the edge of a cliff. The bad news is, once again the bulls failed to pace themselves, tacking on too much of a gain in too short a period of time. A dip to some degree is in order now. The question is, how much of a dip?


Just so there's no confusion, I'm back in the bullish camp for the foreseeable future. I was actually back in the bullish camp when we talked about the capitulation from last Wednesday [Now THAT's a Capitulation], and sure enough, the bulls made good on the hint they dropped that day.

2 Things Still Wrong With This Rebound Effort

Jul 9, 2020

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01:13 PM PST

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Maybe it's just a flare-up of my paranoia, but there's something not quite right about today's follow-through on Friday's bullish move. It's not just a funny gut feeling I have either. We've got some specific, quantifiable problems with the rally thus far, one of which we'll dissect today.


To be clear, I'm still cautiously bullish based on the shape of the bars between Wednesday and Friday of last week. While there are still a couple of hurdles that need to be cleared before we can breathe a little easier, we can't ignore the bullish signal that materialized over those three days. I'm just saying there's still a lingering worry or two that may come back to haunt us before it's all said and done.

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