US equities remain very significantly higher, with upside teal gap effectively filled. The afternoon threatens some cooling… with the market s/t very over-stretched.
sp’60min
VIX’60min
Summary
The setup is in sharp contrast to early Nov’2016. Its almost like the market is pricing in a decisive Trump victory. On any basis, its a lousy setup for those wanting to trade long for such a scenario.
VIX is cyclically very low… so yeah… its an odd setup ahead of the result.
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notable stock: PYPL
The dip buyers are piling in, after unquestionably fine earnings.
EPS $1.07 vs 94cents est’. Rev’ y/y +24.7% to $5.5bn vs 5.4est. Guidance a touch weak…. but broadly good. Sooner or later, it should replace AXP within the Dow.
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notable weakness: MOS
This drop is absolutely not justified.
EPS 23cents vs 17est. Rev’ y/y -13.5% to $2.4bn inline. The latter is likely due to the lockdown restrictions.
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notable mining ETF: GDX, 60min
A touch of cooling, as the miners are not attractive with this s/t cyclical setup.
Time to check on the cheerleaders…