Dow: -51.98…
Nasdaq: -14.34… S&P: -6.48…
The buzz in the aftermarket is about NFLX and IBM. The former beat handsomely on earnings, grew subscribers and raised guidance. The latter…well, it’s IBM. Not so good.
As a result….
IBM
Today I sold my last piece of NFLX. I have no regrets (small sellers remorse maybe), but it could have easily gone the other way. I could write a book on why I try my best not to hold companies through earnings. Its a helpless feeling when it doesn’t go your way and NFLX can go 20% either way on an earnings report. Honestly, I thought the report would be on the soft side, shows you what I know, but I’m not an analyst, most of whom pretty much got it wrong anyway.
The market had a down week last week and went out on the lows on Friday. Today wasn’t inspiring at all and the four major indexes just look like they just need a little bad news to start a nice drop. I’m only going by the charts on that.
The two “risk” groups that I like to watch to indicate overall market appetite are the semiconductors and biotech.
Biotech (IBB) “may” have taken a break from going down, as I saw some decent reversals on some of their charts today. Today means nothing though, and as I always say, I want to see follow through day.
Semiconductors (SMH) are struggling here after breaking trendline support last week and will need some good earnings to get going back to the upside.
These are two important sectors to watch right now.
Energy (XLE) has been soft for about a week now and crude closed just below the all important optical level of 50 bucks.
Stay alert.
This election process has me up to 15 Xanax a day…………….I’m sure I’ll be fine.
I will have a video recap out tomorrow.