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Friday, July 14, 2023

Weekly OPEX Friday - Ahead of Bank Earnings

 This market is sick 

Even the traders on Fast Money don't have anything bullish to say about it. I've never seen Tim Seymour bearish, but his opinion on PepsiCo earnings, was to "short the stock". 

In fact, by the looks on their faces, they're already short, and not amused by the recent market action. 

The host of Fast Money asked, "what do you think of this market", and the guest tried to say that Money Managers were underweight equities, going into the beginning of the year, and being forced to chase performance. 

I think that's hogwash!  

The only investors chasing performance, at these levels, is retail. 

Of course, I think some clever traders have helped drive equities higher - on low summer volume - but only in order to set the bull trap. 

Here's a prediction: Watch for the market to give back all the gains of the past few weeks, within the next 30 days. Then watch the smart money put to work; once the dust settles. 

 Earnings season continues 

Earnings season basically kicks off today with financials. $JPM, $C, $WFC, $BLK, and $SST. 

 $UNH (United Health) - an important Dow component - also reports today. You can bet that one will be up, after the little pullback (setup) we've seen. This would be a good Options bet - in a defensive sector - btw. 

Getting back to financials 

1. As dumb as this market is; I suppose we will see the shorts squeeze again - on this Friday, but  

I wouldn't own any financials, after the run they've already had. 

2. Wall Street has managed to ignore the most recent financial crisis, as if we no longer need a healthy banking sector, but money managers are forced to invest in the financial sector, nonetheless. 

$JPM  is the one to watch - trading in a bearish upturned triangle. Gap (fill) target $160.  


Bank earnings are already out, so I'm going to wrap up this update, and work on the -

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Take Care, AA 

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