TradingWithCody Chief Guide Elad Ryba: Market character change on Monday or Something Else?
The market showed us something very odd yesterday. It repealed all the good tech positioning from last week that just began to inch its way into something we could have called a rotation. Did a fund who owns more than just Gold, who borrows so much more, just blow up yesterday ironically ( and very sadly I might add) with the end of day bombs going off in Boston?
If you look at earnings so far they have been good, albeit early, from AA, GS, C, JPM, JNJ, KO. This is all playing out so fast that you are correct if your mindset switched yesterday to that of protecting your capital with a further correction looming. Yet the earnings which should drive stocks, the market, and add in the worldwide liquidity, whether we like it or not, is adding to upside in a one two punch to drive us eventually higher. We are well oversold as a result of yesterday’s decline and sentiment is quite bearish to start with. Last week’s post of the lowest AAII sentiment readings in a few years even while the S&P was at new hi’s, is a real conundrum.
Today a strong rebound for the open is setting up for the overall market to start the day. Let’s see where we end. Gold and Silver are each up about 3-4% in the early pre market.
A very mixed bag indeed. Was there a market character change or a character in the market just lost all his change? Stay tuned.
