The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Netflix guidance.
Netflix reported last night and their guidance was good. The stock climbed 10% today and made new all-time highs. The S&P 500 rallied with a fresh pulse of optimism, making a new all-time high today as well. Positive vibes are the name of the game and investors are embracing bullishness with each uptick in the tape. Treasury yields climbed small across the curve but didn’t interfere with the rally in stocks. Capital flow was 106% and suggests that all the usual players are playing with all the usual capital. The holidays are over and it’s back to business folks.
Today’s action was pretty boring despite the material rally on good volume. The headlines were all Trump-centric but didn’t affect markets. The macro data wasn’t significant. The story of the day was the earnings season story. Today’s chapter was written by Netflix last night and published by the markets today. If there’s anything beyond the earnings season narrative right now, it would be a technical analysis story.
But that story has been ongoing for years. Today’s new highs merely confirm the chart… so let’s return to our good old chart.
It’s not a mystery. Stocks are going up. We just broke out. Earnings season is still young.
The conclusion is set. It’s just a question of who acts now and who continues to wait.
See you tomorrow.
-Mike
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