10/27 Recap. META & AMZN are Disasters

Coming into this afternoon, Amazon had all day to come up with a plan to fire people and just couldn’t lay it out. The 1 thing Wall Street has wanted all these companies to do this entire earnings season is cut costs, none of them have done it. It’s like they’re all run by the most inept management teams. Andy Jassy is on his 6th quarter at Amazon and although I’ve been a skpetic for a long time, he continues to do nothing to improve the company. Even his area of Expertise, AWS, posted its worst quarter in a long time. Somehow Amazon is in a hiring freeze but managed to add 80,000 workers. META yesterday was hit hard because they couldn’t control costs, its amazing that Amazon thought they could go into today with costs being an issue and not address it. Just really awful management at both companies, but META we knew was bad, that is why Sandberg left, Amazon I really expected them to make cuts.

With both of those down 20%, I’m surprised the market isn’t hit harder. I mentioned yesterday that the stock was putting in a gravestone, which is a candle signaling a reversal, and today followed it up with a move lower. Afterhours we continue to drift lower and now that all the megacaps have reported, and none have really said anything impressive, the likelihood we sell off again is elevated.

The dollar continues to look weak which is a good sign for equities if you’re looking for one, all the key moving averages are rolling over and will offer stiff resistance now to the dollar in any hopes it has of bouncing higher.

Today’s Unusual Options Activity & What Stood Out

It’s interesting how much WOLF was slammed today, I noted in an earlier report this week how many puts were being bought on WOLF and when the previously hot names get hit, they really get hit. Look what WOLF did today