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PrintThank you, Mr. Vixman for a good first session. You sure as heck had us faked out. Of course a higher oil price and lower interest rates played a role but we know you are still calling the tune.
Now, can a second session be in the offing that's also a good one? It's funny but there's something at work here that may be stock specific that can trump things. (Usual puns may or may not be intended).
Here's the deal: remember I wrote yesterday that the lightweights only look at the S&P and FAANG? Well the heavy-weight stock trigger pullers look at the Internet of Things vs. cellphones. The former is industrial and the latter is cellphones.
Last night HP Enterprise (HPE) and HP Inc (HPQ) reported outstanding numbers. The first is internet of things. The second is personal computers and printers.
The first is the Texas Instruments (TXN) , Analog Devices (ADI) world that has been under pressure since Texas Instruments reported a punk number. HPE has re-opened the door to buying in that group. The second, HP Inc, is all about Micron (MU) and Intel (INTC) and their derivatives, namely Applied Materials (AMAT) and Lam (LRCX) . Of course you can throw in Microsoft (MSFT) , which is a big throw-in.
These are the stocks I have been the most concerned about. They have been performing not as well as we need to have a large run.
If you question the thesis notice these stocks have all bounced and Universal Display (OLED) has failed to bounce -- that's total cellphone, which is, by nature, FAANG.
So, in many ways today is not just about VIX, it is about COMPANIES!
The misdirection by the bonds -- to be or not to be 3% is important. Oil going higher is important. The VIX as always is dominant. But the actuals of HPE and HP are standouts. They may allow the second session to defend the ramparts against a Friday afternoon VIX short covering which must be expected.
