Here's what a bull needs. After the close you must hear Nvidia ( NVDA) report a good number and then give guidance that is better than feared. You also need to hear Applied Materials ( AMAT) no longer slash its forecast for 2019 because demand has stabilized.
You also need to see that Home Depot ( HD) stops going down. Remember the other night we did an "Off the Charts" piece keying on the observation by Larry Williams that 33 times out of 33 times buying Home Depot and holding it for 10 days (with a stop loss) has produced a winning trade.
And you need to hear that analysts stop worrying for a couple of days because GE ( GE) announces it has the board of directors and a timetable for spinning off healthcare even as I wish they would sell it outright for $30 billion. That would get the analysts to stop falling all over each other to denigrate it. The division is worth far more than that. You could argue -- and I think they are hoping -- that by doing it this way it will ultimately get a Thermo Fisher valuation -- 32 p/e and a $93 billion valuation.
I don't know how much they can get for the 20% they want to hive off. But only an outright sale would allow them to take the charge to shrink the power division and write off Alstom Energy.
These CAN happen. Just like Apple ( AAPL) can rally after the technicians gave up on it.
Tall order. But they can occur because stranger things have occurred.
Remember, you have Fed Chair Jerome Powell repositioning. You have nothing new and negative on trade yet although our erratic president always threatens to tweet something on this incredibly important issue that is far too subtle for tweeting.
Why am I being so vociferous? Because Jay Powell said last night he doesn't want to be the man who pushes the late cycle into an early grave. Ok, not in so many words.
But only those with an agenda would disagree with that statement.
