1/25 Recap. Stocks Are Never Going Down Again.

That’s certainly how it feels. There is absolutely nothing that can bring this market down seemingly. This morning we woke up with the Nasdaq down 200 and it reversed all the way to flat. Microsoft fell down to $230 which was almost 10% higher than it was 2 weeks ago, and it’s numbers were bad, but the dip was bought. There is not much to say, for the moment, although the market has not broken out, this is some very bullish price action.

Look at the candle Microsoft put in. It closed right below the year long downtrend but it did not want to close below any of the moving averages. It’s especially fascinating because Satya Nadella told people on the call yesterday that Microsoft was decelerating and this was going to be a dead year. Regardless, investors brushed it off.

You look at another name that reported yesterday Capital One,COF, it reported a miss on revenue and eps. It also reported provisions increasing for all the customers who likely won’t pay their credit card bills this year. Nothing good at all on their call, and today it was up 9%, look at that candle and the volume on it, below.

You could throw a rock and hit a stock up 20-30%, here is Disney, it too is up 30% in less than a month. In 16 sessions this year, it had a red candle on 3 of them. Very impressive strength here too.

Let’s take a look at the SPY, what a beautiful candle it posted today. It still hasn’t broken that elusive downtrend we’ve been in, but it continues to be indestructible. What you will see is the last 4 days, we dip and every dip is bought with the candles closing green and near highs. This is not bearish price action. Can it reverse next week when Powell speaks? Yes it can, for now, this is just fascinating to watch.

This is the SPY intraday today, we just made a “V” right back to flat. You would think a bad print from the second biggest company in the country with a warning the next year would be pretty bad would be bearish, but in this “bullish recession” as I’m now calling it. This is the first time in history we have all this negative economic data, companies missing and guiding down, a fed insisting stocks need to go lower as they QT and the market continues higher in the face of it all.

Take Tesla, below,this equity bounced 40% in the past month, they just missed Free Cash Flow by over 50% on their report. It was estimated at $3.13b and came in at $1.4B. That is pretty awful when FCF was over $3b in September, but today, it is “priced in” as the equity is already smashed since September. Look at the AH reaction.

Today’s Unusual Options Activity & What Stood Out