Guidance and quarterly updates to guidance are normal things that help companies frame investor expectations for the year. Since the coronavirus, guidance has been pulled and suspended almost across the board. Normally, guidance pulls are horrible news. Nowadays? It's positive.
Coca Cola reported earnings yesterday. There was no guidance given. The stock went up. If things are so great, why can't guidance be provided? It's one of the (many) things that irks me about this whole stock market rally on bad news and worsening outlooks.
I was obviously overly bearish and worried about the downside. It doesn't look like the world will end, as I feared. But things still aren't rosy! Earnings will be down year over year! The millions of lost jobs and huge numbers of people not making mortgage payments will have consequences.
You want some guidance? Tread lightly in the stock market. Especially on the long side.
Also, why do we need more stimulus if the economy is great?
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1) This isn't exactly a chart, but worth painting in your mind. Buybacks don't always add value. IBM has bought back $140 billion worth of stock in the last 20 years. Current market cap is $118 billion.
2) There's a chart in this tweet, but note that Amazon accounts for 263% of the S&P 500 return this year.
3) If you don't think this rally is stretched, you're nuts. It needs to either breathe via time or price movement down. Markets don't go up in a straight line.
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I made a great VXX call options trade - earning 14% in 24 hours. And continue on the hunt for more fast money.
My slow money, being short the broad markets, is hurting - so I need the fast money to offset the losses. I worry about being wrong on timing, not on the direction. Just have to survive the pain.
Today, I'll be transacting a bit in TSLA. I expect volatility as they report earnings after the close. There's money to be made on day trades. I probably won't share those trades here as they'll be held for 5-30 minutes - which is outside of the scope of this blog's goals.
I'm also on the hunt for cheap stocks to buy. They seem few and far between, so share any ideas!
Coca Cola reported earnings yesterday. There was no guidance given. The stock went up. If things are so great, why can't guidance be provided? It's one of the (many) things that irks me about this whole stock market rally on bad news and worsening outlooks.
I was obviously overly bearish and worried about the downside. It doesn't look like the world will end, as I feared. But things still aren't rosy! Earnings will be down year over year! The millions of lost jobs and huge numbers of people not making mortgage payments will have consequences.
You want some guidance? Tread lightly in the stock market. Especially on the long side.
Also, why do we need more stimulus if the economy is great?
________________________________________________
1) This isn't exactly a chart, but worth painting in your mind. Buybacks don't always add value. IBM has bought back $140 billion worth of stock in the last 20 years. Current market cap is $118 billion.
2) There's a chart in this tweet, but note that Amazon accounts for 263% of the S&P 500 return this year.
3) If you don't think this rally is stretched, you're nuts. It needs to either breathe via time or price movement down. Markets don't go up in a straight line.
________________________________________________
I made a great VXX call options trade - earning 14% in 24 hours. And continue on the hunt for more fast money.
My slow money, being short the broad markets, is hurting - so I need the fast money to offset the losses. I worry about being wrong on timing, not on the direction. Just have to survive the pain.
Today, I'll be transacting a bit in TSLA. I expect volatility as they report earnings after the close. There's money to be made on day trades. I probably won't share those trades here as they'll be held for 5-30 minutes - which is outside of the scope of this blog's goals.
I'm also on the hunt for cheap stocks to buy. They seem few and far between, so share any ideas!
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