US equities open in minor chop mode. The market is clearly tired, as daily momentum is weakening across all the main indexes. There is a distinct threat of some market drama before Halloween.
sp’60min
VIX’60min
Summary
Many of yesterday’s black daily candles (inc’ the SPX), have already played out. Right now, there isn’t much downside power, except within select stocks/sectors… not least anything commodity related.
In theory, we should see some cooling (if choppy) across the next few days. The 4450s are a min’ target, but I’d be open to the 4380s, if the market uses QE taper as an excuse (if VERY briefly).
I’m in no hurry… and very content to watch FCX, X, OXY… get hit hard.
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notable Dow component: MSFT
New historic high.
Earnings (Tues’ AH) EPS $2.27 vs 2.08est. Rev’ y/y +22.0% to $45.3bn vs 44.0est. Unquestionably good. FPE 30s… isn’t cheap… but still better than a govt’ bond. Many upgrades today… such as Goldman 360>400
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notable horror: HOOD
Earnings were outright garbage. A broker that isn’t charging for its service, with huge customer service issues. What could possibly go wrong?
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notable energy: OXY
S/t bearish with the sector. Momentum due to turn negative.
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notable miner: FCX
S/t bearish with the main market. Momentum to turn negative in 1-2 days. I’d like the 35/34s.