I recommended in a post a few weeks ago that when Tesla was 262.00 dollars, it was a good idea to get out. As I write, their earnings came in, and the stock is 229.10 in after-hours trading. This stock may have a dead cat bounce, but in the short term, the easiest path is lower, and now is not the time to go long-term. I believe Tesla will have a much better buying opportunity, but now is not the time. They have problems that need to be addressed in the near term.
Alphabet Earnings
Alphabet closed at 183.60. I haven’t gone through their earnings report, just the headlines thus far, and the stock is down in after-hours trading as I write this to 180.44. Year-over-year revenue was up over 13%. Which is great! They beat consensus on both the top and bottom lines. Their outlook was also very good. “The media spin why it’s down currently is YouTube ad revenue came in a little under expectations REMEMBER I SAID THIS IS A TRUTH SITE AND WE WILL TRY THE WADE THROUGH THE PUNDITS. Hello!!! Media pundits. Year-over-year revenue was up over 13%. YouTube is important, but its lower ad revenue is by no means a death to its revenue growth. The stock is down, which, in my opinion, is profit-taking, and I doubt there will be a lot of new money (institutional buying) committed to the big-name stocks at this time. Long-term, most will be fine on a stock-by-stock basis.
So if you are a trader and own some big names, I hate to say it, but I told you so.
As I mentioned in a previous post, this looks like the sell (big tech) on the news (earnings season) no matter how good the earnings or outlook. It’s that time of year, and there is a lot of uncertainty moving forward. And the biggest thing institutions hate is uncertainty. Raise some cash; it’s a good time.
THE MARKETS TODAY
The Dow, the NASDAQ, and the S&P 500 all closed down slightly today. But what needs to be noticed is that the Small CAP RUSSELL 2000 closed UP OVER 1.02%. Another thing I predicted in a previous post. If you are a trader, this is where you want to be in the near term. (read previous posts.)
Small-cap stocks had their second-largest inflow on record, pegged at $9.9 billion recently.
Stock inflows from global investors plowed nearly $45 billion into U.S. equity funds recently, the fourth largest tally on record.
Remember, stocks and the stock market are just huge supply-and-demand equations. If more money is going into stocks than out, what happens?
If small caps had their second-largest inflow on record, what happens? Remember to follow the institutions (big investors) and use them to your advantage. If you don’t they will take advantage of you.
Important to remember that!