Is there that much money really on the sidelines?
It sure feels that way. We have two of the biggest groups doing incredibly well, the techs which are advancing and the financials which are consolidating their gains, and those are both sectors that have been hit inordinately by China.
Sure they are not "Chinese" stocks like Boeing (BA) or Caterpillar (CAT) , which got knocked off the conviction buy pedestal over at Goldman today, although Caterpillar's stock is actually up. Hmm, that's a good example of money on the sidelines.
But after an initial burst of buying in the financials, brought on by what was a better than expected Goldman (GS) quarter, the group reversed but did not go down after Goldman got clobbered, once again, from its conference call.
I think tech caught a bid because the two most important semiconductor names, Broadcom (AVGO) , with a stock that has been weak from the (CA) bid, and Nvidia (NVDA) , the gaming, artificial intelligence and data center chip maker, caught bids. It's the second day that Broadcom has stabilized. Nvidia's been acting funky because of worries about gaming chips but Morgan Stanley disabused people of that notion this very morning.
In the meantime the shrug off of Netflix's (NFLX) miss is out in full force. I guess there's enough fear of missing a FANG rally that they just can't wait for lower prices.
But then again, it is early.