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GDP Anticipated, Partly Digested
US equity indices ran up bigly in premarket and the early part of regular trading hours yesterday, in anticipation of and then in an initial reaction to US GDP numbers. The indices sold off towards the end of the trading day delivering what looked like a nothingburger for the S&P and Nasdaq. The Russell closed up some.
During the day high beta names remained elevated. This happens occasionally - scary stocks are bid up whilst the bigs sell off - and we can call that a mixed signal at best. It does not signal general bullishness to my eyes; for that you want to see high volume sustained buying in the major names.
After hours there were very positive earnings reactions to ho-hum numbers from software companies Salesforce ($CRM) and Snowflake ($SNOW). Both were up around +10% in the postmarket period. That does look like bullish sentiment, particularly for $CRM which is now something of a grandpa-tech name, becoming more akin to its alma mater Oracle as each year goes by. ($CRM is a Dow Jones 30 constituent).
And in the nearer term?
As I noted here on Tuesday, each of the indices are closing in on what looks to me to be local Wave 5 termination zones. So speaking personally I am preparing to hedge the long positions; carefully, because there is a chance that the ceaseless grind upwards continues. As always, paying subscribers will get Trade Disclosure Alerts on a real-time basis before any such short positions are entered into.
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