Don’t blink, you’ll miss… the corrective bounce? The rally from Tuesday’s open through Friday morning has been substantial and steep. Bear market rallies fit that definition, so this may be that, unless it recovers relevant resistance. Don’t blink, you’ll miss… the corrective bounce’s peak and reversal back down? Mexico tariffs being averted are likely to extend an already extended bounce even higher only because things will remain the same.
Extending last week’s rally has likely resistance just above, and a likely character to its reversal if the bounce is ending. Which means there are default characteristics to signaling new highs are in-play. We discuss those factors, their specific price levels and behaviors, and other inputs during this week’s Saturday Review.
The following stock requests were reviewed in this order:
TLRY, UBER, LYFT, BIIB, MMM, RH, LULU AVGO, TUFN, FB, AAPL, AMZN, NFLX, GOOGL, AMD, SYMC
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ljr iPad: gm Rod. will watch recording later
ljr iPad: can you review:
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ljr iPad: RH, LULU, AVGO, TUFN. earnings this week for all.
ljr iPad: thx
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David B: Good Morning
Bill G: gm
Rod David: Welcome to Saturday Review. Please post questions and comments as they occur to you.
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Mark G: temporary reaction up Sun can still last through Mon open
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Mark G: UBER
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Bill G: A couple times a year I see similarities between the current market and the move from the 1987 Aug high and the early Oct secondary hifg. Although we never had a crash, it was usually a good risk /reward entry for at least a minor short term correction. In 1987, it was 27 trading days from the Aug high to Oct high was 27 trading days. Fri was 25 trading days from the May high. The rally to the Oct high in1987 corrected 69% of the previous drop. Fri retraced 69% of the May high to the low four day’s ago.There are some other longer term similarities to 1987.
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David B: BIIB,MMM – what would tell us these stocks have bottomed and strong money is accumulating?
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Bill G: The main difference, it took only 4 days of rally to regain 69% of the drop currently but 8 days in 1987.
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Bill G: I think we have either ended a vicious bear mkt rally or started a new bull mkt leg
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Mark G: UBER has been rallying despite the mkt recent decline maybe because the drop to 36 was overdone
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David B: in your work when the bond and stock market has rallied that something has to give one way or another?
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Bill G: The idea that the mkt is expecting lower rates and supported by weak economic reports, to me should expect lower stock prices not higher ones
David B: if bonds is predicating recession and rate cuts then you would think stock would correct?
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Bill G: I think ljr has stock requests above
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David B: AMD
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David B: SYMC – similiar like BIIB and MMM?
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Mark G: thx
Bill G: thanks
David B: Thanks