US equities open choppy, leaning on the positive side. Daily momentum in the SPX has turned negative, as the downward pressure is increasing. VIX is churning the 28s. Gold/silver/copper, are all pressured via a higher dollar.
sp’60min
VIX’60min
Summary
Chop chop… for what is messy open, as Mr Market is looking for direction via Pelosi/Mnuchin.
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notable stock: TSLA
Earnings were once again propped up by ‘credits’.
Q3 Adjusted Net Income $874MM
Regulatory ‘credits’ $397MM
397/874: 45.4% of earnings is govt’ subsidy.
Q3 EPS 76 cents x0.454: 34.5cents is subsidy, and 41.5cents is ‘real profit’.
Almost half of reported earnings is simply ‘free money’ from the US Govt’. Pretty incredible huh?
Yesterday’s black daily candle is suggestive the stock will turn negative at some point today.
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notable reversal: PTON
Yesterday’s bearish engulfing candle played out, although there is a reversal in progress. Goldman mixed downgrade.
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notable Dow component: MSFT
A key stock to watch… for a trend break. Earnings due next Tues’ AH.
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notable mining ETF: GDX
Miners hit by gold/silver. Momentum set to turn negative.
Original PF target of the $33s still appears probable.