Apple, General Electric, and McDonald’s earnings are out, and they are stellar. Expectations of a disappointment in Apple (AAPL) were unfounded. Apple reported strong results across all of its businesses, while iPhone and AirPod sales alone surpassed estimates. McDonald’s (MCD) sales, earnings and global comps (+5.9%) also beat expectations. General Electric (GE) is finally back in the double digits, trading above 12.00 to start 2020. The company’s aviation business showing strong results.
S&P500 Futures Surging Higher
Futures are higher this morning, as price action in the big-cap index appears ready to test all-time highs again. We’re watching that upper trend line, a subjective zone, for rejection. Once we see a reaction, we’ll have a third pivot to reassess going forward. For now, earnings are the caveat.
Cycles are weak. NYMO is still in a downtrend, while breadth thrusts are near a level that could help the bulls if signs of improvement surface.
Junk Bonds and the S&P500
Junk bonds tend to lead the market. Any improvement would give us one more reason to side with the bulls.
Boeing (BA) earnings are out as we go to print. The numbers were worse than expected, yet the stock is back to green (+5 points) after being down by (-7 points) just a few minutes ago.
- Corning (GLW) earnings report is out as well.
- Goldman Sachs (GS) is higher this morning on news.
- Facebook and Amazon have earnings on deck, so we will wait until the dust settles to adjust our game plan into next week.
All things considered, we are still cautiously optimistic. As such, we are trading far fewer swing positions. We are day trading most new positions until the S&P500 can normalize.
New day trades must have RVOL > 2.0.
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Happy Trading,
Vinny
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