Tag: Mid-Day Report

Things Got Pretty Ugly For Amazon (NASDAQ:AMZN) Yesterday

Posted on by The INO.com Team

Yesterday was a doozy of a day for buyers of Amazon. First the stock rallied and closed out the day at $635.35 for a gain of $52 (8.91%) in regular trading hours. Great day, right?

After the close, Amazon.com, Inc. (NASDAQ:AMZN) released its Q4 earnings which were a big market surprise. In a matter of minutes, Amazon dropped over 13%, closing at $550 in after-hours trading. That is a swing of $85.00 or over 20% in one day!

I outlined on Wednesday that I was neutral on Amazon as the weekly and monthly Trade Triangles were in conflict. When you see a conflict between the weekly and monthly Trade Triangles, it indicates a sidelines position for the stock.

It's the end of the week, end of the month and it's time to talk about the January barometer. Continue reading "Things Got Pretty Ugly For Amazon (NASDAQ:AMZN) Yesterday" →

One Day Does Not Make A Trend

Posted on by The INO.com Team

It's hard to believe that we just have one more trading day in January, which has been an extraordinarily volatile month and one that will certainly go down in the history books.

Many of the well-known large stocks are now in downtrends and are not likely to have major turnarounds anytime soon. One has to remember that the stock market looks six months ahead. While many of the companies are perhaps enjoying some good earnings, this may be the last good earnings season we see for some time to come.

On a brighter note, my trade in Apple Inc. (NASDAQ:AAPL) turned out well and it would now look as though Apple is going to be on the defensive for several months. I can see this stock continuing to erode down to perhaps the $80 level.

Let's look at some other well-known stocks that are all in major downtrends at the moment. Continue reading "One Day Does Not Make A Trend" →

The Head Of The ECB Speaks - What Did He Say?

Posted on by The INO.com Team

After a wild day in the markets yesterday, Mario Draghi, president of the European Central Bank, was at center stage this morning. What he said was almost incomprehensible to most people, including me. The clear takeaway was that European interest rates will not be going higher anytime soon. He was also asked what instruments the ECB have left to fight the current impasse in the markets. His answer was classic mumbo-jumbo Central Bank talk and did not address the question at hand.

It seems to this observer that the ECB and the Fed are literally out of ammo and have no clue what to do next. Fed chairwoman Janet Yellen's decision to raise interest rates here in the United States was, in my opinion, too late to have the desired effect. Should the markets head south as it looks like they may be doing, does the Federal Reserve have a backup plan or do they move rates back down again to stimulate the economy with another QE? Continue reading "The Head Of The ECB Speaks - What Did He Say?" →

When Perception Meets Disillusionment

Posted on by The INO.com Team

Perception, in my mind, is one of the most powerful forces in the market. Perception can help drive the market up or down and currently that direction is down.

Disillusionment happens when investors become so stressed out that they become disenchanted with the market, remember 2008? That is what I think is beginning to take place right now in the markets.

Let me give you an example with a well-known stock. Just two weeks ago Amazon was flirting with the $700 level and investors were falling over themselves to get into the stock that they thought was going to go much higher (perception). Now here we are 14 days later and Amazon has dropped over 20%. Did Amazon's business change dramatically overnight, are the prospects suddenly bad now for Amazon? The answer is no, what did change was perception. Almost overnight everybody who wanted to get into this stock became stressed and disillusioned and then wanted out. Continue reading "When Perception Meets Disillusionment" →

Beware Of Dead Cat Bounces

Posted on by The INO.com Team

What is a dead cat bounce? It is simply a rally from a very oversold condition. That's the case today as many of the markets have literally gone straight down in the first weeks of 2016 and contributed to the worst start of any year in the history of trading.

A dead cat bounce does not mean a trend change or that you have made a major bottom in the market. Technically, a dead cat bounce is really just a short covering rally from a market that is very oversold. If and when the major indices are going to reverse the trend and move back up, they are going to have to do quite a bit of repair work to change the negative technical picture that we are currently facing.

After the close today Netflix.com Inc. (NASDAQ:NFLX) will report earnings - the current technical picture for this stock is mixed. The longer-term trend for Netflix is positive with a green Trade Triangle in place. However, the intermediate-term trend is down with a red weekly Trade Triangle. I would suggest standing on the sidelines at the moment. Continue reading "Beware Of Dead Cat Bounces" →