Daily Plan 4/29 '22
Recession fears fueled Rally
Folks-
The GDP shrank for the first time in many quarters and the not so obvious reaction from this one step closer to recession by the Wall Street was one of the largest rallies in recent months. Extremely solid rally - I think if any thing can ruin it, it is going to be the AAPL and AMZN earnings reports, set to be released to the public in about a hour from now. AAPL is now trading 164, AMZN has come above 2920 - this may change rapidly. We may be seeing AAPL in 14X handles soon, AMZN may be back down below 2700. If so, we will see some pressure on Emini S&P500 as well.
The market thinks since we may be headed to recession, the FED will take a pause, they will perhaps stop or even reverse their planned rate hikes. They think on the Fiscal side the government will spend more.
Perhaps a little wishful thinking! We will see how the market behaves in coming days and weeks on this recessionary scar, if it has legs. I doubt it though despite that rally from my 4187 to 4300 at time of this post.
This excerpt was written earlier in the day. I am picking this up from where I left off and both AMZN and AAPL earnings are out. I was bearish on both of these names yesterday in my plan . See below.