The SPY is holding up very well considering one of the 5 largest components is down double digits and Microsoft completely reversed a big move up on news of a bond sale. The Google news shouldn’t be a shocker to you I put it as a major concern of mine yesterday I was hoping it wasn’t yesterday but now its up to Google to prove search isn’t in secular decline. I think the biggest issue is people don’t understand when you dominate a market the way Google does even tiny declines are a very big deal even when cloud is growing 100%. It will now take multiple quarters for Google to prove search is fine. Google was a unique case where it was trading at lows going into earnings, the chart was telling you something was really wrong. Other than that we have Amazon reporting today and it has a somewhat similar setup going into earnings at lows of the quarter but I think it will be fine. Retail is Amazon’s main business and that isn’t at risk of anything, even after banning agents. Q4 is always Amazon’s best but Amazon always gives this $10b wide guide the market hates and if they warn at all on consumer spend or raise capex beyond expectations then the market is really in trouble so stock bulls hope Amazon has nothing but rosy things to say. Other than that GDP was a beat this morning and inflation was inline. Once the market realizes the panic should be localized to Google I think the market will be fine and you’re seeing it below in a chart that is lingering right near the top of all the moving averages.
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Here are today’s large cap momentum scans, the rest of the day’s small and mid cap scans can be found in the database link below.
My Open Book
Trades I Made Today
